Shares in clothing manufacturer Coats Group (LON:COA) rose over 8 percent in early market trading on Wednesday, after a trading update revealed a strong set of figures for the first four months of the year.
Between January and April 2017 group sales rose by 5 percent year-on-year, 3 percent of which was organic growth, driven by stronger than anticipated performance in the Industrial division. According to the company, this was achieved by continued solid growth of the core Apparel & Footwear business, which rose by 4 percent, despite continued mixed demand from clothing retailers and manufacturers.
However crafts sales declined 5 percent, which Coats attributed to business disruption caused by the tornado strike at the main Crafts distribution centre in Albany, Georgia, USA.
In a statement, the group said it has had a “strong start to the year”, and now expects to deliver 2017 full year results ahead of management’s previous expectations.
Coats is one of the world’s largest industrial thread manufacturers with a strong presence in the Americas textile crafts market. Shares in the group rose 8.06 to 67.00 (1156GMT).