International threads and footwear components producer Coats Group said Thursday (1 August) it continues to outperform the industry releasing a strong set of results for the six months ended 30 June.

That meant further market share gains across both apparel and footwear.

Reported revenues for the period rose 7% (up 8% at constant currencies) to $741 million (£578 million) as the business continued to recover from the post-pandemic destocking cycle. It noted that apparel customer inventory and buying patterns returned to more normalised levels.

While the footwear recovery is still slightly behind apparel, it also said the division’s “now back to robust levels (up 7%)”.

Meanwhile, its Performance Materials division “continues to be impacted by US customer phasing and operational challenges (3% lower), but on an improving trend – returning to year-on-year growth in Q2”.

Adjusted EBIT rose 24% (+26% currency neutral) while reported EBIT rose to $118 million from $92 million in the year-ago period.

The group adjusted EBIT margin of 18% was ahead of the previously announced 2024 margin target of 17%. It said the strong margin performance was supported by operational improvements and strategic cost-saving initiatives.

Looking ahead, the group said it continues to make “good progress” and has delivered a first half out-turn above expectations. That led to an upgrade to its full-year guidance “modestly above current market expectations, as these trends continue”.