Fashion Brands Find Rescuers in Mask-Making Coronavirus – April 9, 2020 | Instant News


American fashion brands warn that it will be difficult for them to survive without government assistance. Demand for new products has disappeared over the past few months due to the coronavirus outbreak, which has resulted in stores closing indefinitely. At the same time, when the number of corona virus patients swelled in the United States, health authorities and hospitals suffered from a lack of masks and other protective equipment.

Given this situation and with more than 50,000 fashion shops closed across the state, many brands not only complement the lack of protective equipment but also look for survival strategies. This includes a number of fashion brands that are combating pandemics with the US government by producing surgical masks, N-95 respirators, and other medical equipment.

Shifting the Fashion Brand to Mask Production

Fashion brands and retailers are shifting production lines from making apparel to making masks and dresses, while many of them direct their own supply of masks to health workers. The Gap, Inc. (GPS Free report), reportedly, is working with its manufacturing partners to explore the production of fabric masks and other protective equipment for care givers.

The giant clothing company is looking for a solution to use excess production capacity of garments for cloth masks and additional protective equipment. HanesBrands, Inc. (HBI Free report) is a garment maker that has a contract with the US government to produce cotton masks. The company has already begun production and plans to produce 1.5 million masks every week, using its design and pattern.

Canada Goose Holdings Inc (GOOS Free report) has increased the production of dresses and scrubs at its two facilities in Canada with minimum workers. The company aims to donate scrubs and dresses to healthcare workers in the United States. Ralph Lauren Corporation (RL Free report) is working to produce 250,000 masks and 25,000 isolation gowns that meet FDA standards. Gap and HanesBrands each carry Zacks Ranking # 3 (Hold). You can see a complete list of Zacks # 1 Rank (Buy Strong) shares today here.

The Fashion Industry in Crisis

The $ 2.5 trillion global fashion industry has taken a big blow after the coronavirus outbreak. Global fashion sales are expected to fall by around 30% by 2020, according to a report by Business of Fashion (BoF) and consultancy McKinsey. American retail giants such as Macy’s, Inc. (M. Free report) and Nordstrom, Inc. (JWN Free report) has closed all their stores and bled.

Meanwhile, after witnessing the largest daily increase in COVID-19 deaths from 68, on April 8, California governor Gavin Newsom said that the state was ready to spend nearly $ 1 billion to buy up to 200 million masks each month to increase its inventory.

In early March, the United States had only 12 million N-95 respirators and 30 million surgical masks, only 1% of what was estimated to be needed during this pandemic. Whereas companies like 3M Company (MMM Free report) and Honeywell International, Inc. (HON Free report), which is a traditional mask maker, struggling to keep pace with the increasing demand, it is clearly a good step by clothing makers to switch to mask manufacturing because their core business is stalled.

The Biggest Technology Breakthrough in a Generation

Be among the earliest investors in new types of devices that experts say can have as much impact on society as electricity inventions. Current technology will soon be obsolete and replaced by this new device. In the process, it is expected to create 22 million jobs and generate $ 12.3 trillion in activity.

Certain stocks can skyrocket at the launch of this new technology. Early investors could see profits similar to buying Microsoft in the 1990s. Zacks special report that was just released revealed 8 shares to watch. This report is only available for a limited time.

See 8 breakthrough shares now >>


image source


Please enter your comment!
Please enter your name here