Coats on track as industrial sales offset craft decline

Coats Group said it was on track to meet expectations for annual results after booming business at its industrial thread unit made up for falling sales of knitting wool and other craft products.

Over the four months to the end of October revenues increased 2% as demand from makers of clothes and shoes grew. The apparel and footwear division, which makes up 70% of the group's business, saw sales rise by 6%.

Sales fell 12% at the crafts division, which sells wool for knitting and crochet as well as cotton, zips and other products. North American crafts, which make up about 10% of total revenues, was weighed down by tough trading conditions and a big customer's decision to sell own-label knitting products.

"The group continues to perform strongly, particularly in the Industrial division, and expects to deliver 2017 full year results in line with management's expectations," the company said.

Coats said it was concentrating on simplifying its business, innovation and developing its digital capabilities.