IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v37y2026i1p266-281.html

Sustainability, profitability, and resiliency of the fast fashion industries during a pandemic

Author

Listed:
  • Meriem Meskini
  • Tanvir S. Mahmud
  • Sagar Ray
  • Amy Richter
  • Tahlima T. Sithi
  • Kelvin Tsun Wai Ng

Abstract

The size of the global textile market was estimated at nearly one trillion USD in 2021 and the circularity of fashion items are of utmost practical and economic interests. Many postconsumer textile wastes are not recycled, and are sent to landfills for permanent disposal. This study examines the profitability of the selected fashion companies and compares the financial performance through weighted average net profit margin and business characteristics. The 10 companies are divided into 2 groups (conventional and sustainability) for analysis. The conventional fashion companies have a total sales revenue approximately 23 times higher than that of the sustainability fashion companies. The weighted average net profit ratio of the conventional fashion industry averaging +4.7 during the 5-year study period, much higher than the sustainability fashion group. Sustainability fashion industry is emerging and appears more sensitive to fluctuations in business expenses and COVID lockdowns. Net profit was negative for the sustainability group in 2022, and more aids such as government initiatives and incentive programs may be critical to the growth of the sustainability fashion sector. Both sustainability and conventional groups have positive relations between net profit and number of employees and net profit and market shares, respectively. The results suggest that fashion industry has opportunities to be more profitable by adopting socially responsible goals.

Suggested Citation

  • Meriem Meskini & Tanvir S. Mahmud & Sagar Ray & Amy Richter & Tahlima T. Sithi & Kelvin Tsun Wai Ng, 2026. "Sustainability, profitability, and resiliency of the fast fashion industries during a pandemic," Energy & Environment, , vol. 37(1), pages 266-281, February.
    • Handle: RePEc:sae:engenv:v:37:y:2026:i:1:p:266-281
    DOI: 10.1177/0958305X241239896
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X241239896
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X241239896?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Huang, Chi-Jui, 2010. "Corporate governance, corporate social responsibility and corporate performance," Journal of Management & Organization, Cambridge University Press, vol. 16(5), pages 641-655, November.
    2. Jeon, Yoontae & McCurdy, Thomas H. & Zhao, Xiaofei, 2022. "News as sources of jumps in stock returns: Evidence from 21 million news articles for 9000 companies," Journal of Financial Economics, Elsevier, vol. 145(2), pages 1-17.
    3. Kay H. Hofmann & Axel Jacob & Massimo Pizzingrilli, 2022. "Overcoming Growth Challenges of Sustainable Ventures in the Fashion Industry: A Multinational Exploration," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    4. Cristel Joy G. Cayaban & Yogi Tri Prasetyo & Satria Fadil Persada & Rianina D. Borres & Ma. Janice J. Gumasing & Reny Nadlifatin, 2023. "The Influence of Social Media and Sustainability Advocacy on the Purchase Intention of Filipino Consumers in Fast Fashion," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    5. Jung, Jaesuk & Kim, Sang Jin & Kim, Kyung Hoon, 2020. "Sustainable marketing activities of traditional fashion market and brand loyalty," Journal of Business Research, Elsevier, vol. 120(C), pages 294-301.
    6. M. López & Arminda Garcia & Lazaro Rodriguez, 2007. "Sustainable Development and Corporate Performance: A Study Based on the Dow Jones Sustainability Index," Journal of Business Ethics, Springer, vol. 75(3), pages 285-300, October.
    7. Mitchell, Karlyn & Pearce, Douglas K., 2007. "Professional forecasts of interest rates and exchange rates: Evidence from the Wall Street Journal's panel of economists," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 840-854, December.
    8. Amy Richter & Kelvin Tsun Wai Ng & Bahareh Fallah, 2019. "Bibliometric and text mining approaches to evaluate landfill design standards," Scientometrics, Springer;Akadémiai Kiadó, vol. 118(3), pages 1027-1049, March.
    9. Xiaoqian Lu & Tong Sheng & Xiaolan Zhou & Chaohai Shen & Bingquan Fang, 2022. "How Does Young Consumers’ Greenwashing Perception Impact Their Green Purchase Intention in the Fast Fashion Industry? An Analysis from the Perspective of Perceived Risk Theory," Sustainability, MDPI, vol. 14(20), pages 1-17, October.
    10. Watanabe, Chihiro & Akhtar, Waleed & Tou, Yuji & Neittaanmäki, Pekka, 2022. "A new perspective of innovation toward a non-contact society - Amazon's initiative in pioneering growing seamless switching," Technology in Society, Elsevier, vol. 69(C).
    11. Jensen, Federico & Whitfield, Lindsay, 2022. "Leveraging participation in apparel global supply chains through green industrialization strategies: Implications for low-income countries," Ecological Economics, Elsevier, vol. 194(C).
    12. Davoodi, Shayan & Fereydooni, Ali & Rastegar, Mohammad Ali, 2024. "Can portfolio construction considering ESG still gain high profits?," Research in International Business and Finance, Elsevier, vol. 67(PA).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. María del Mar Miras‐Rodríguez & Amalia Carrasco‐Gallego & Bernabé Escobar‐Pérez, 2015. "Are Socially Responsible Behaviors Paid Off Equally? A Cross‐cultural Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(4), pages 237-256, July.
    2. Elif Akben-Selcuk, 2019. "Corporate Social Responsibility and Financial Performance: The Moderating Role of Ownership Concentration in Turkey," Sustainability, MDPI, vol. 11(13), pages 1-10, July.
    3. Carlos Lassala & Andreea Apetrei & Juan Sapena, 2017. "Sustainability Matter and Financial Performance of Companies," Sustainability, MDPI, vol. 9(9), pages 1-16, August.
    4. Kwame Owusu Boakye & Isaac Nyarko Adu & Michael Kyei-Frimpong & Evelyn Twumasi, 2024. "Gaining competitive advantage through integrated talent development and engagement practices in the telecommunication sector; the mediating role of corporate image," Future Business Journal, Springer, vol. 10(1), pages 1-15, December.
    5. Kara, Karahan & Yalçın, Galip Cihan & Akagün Ergin, Elif & Simic, Vladimir & Pamucar, Dragan, 2024. "A neutrosophic WENSLO-ARLON model for measuring sustainable brand equity performance," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    6. Nuanphromsakul, Kajohnjak & Szczepańska-Woszczyna, Katarzyna & Kot, Sebastian & Chaveesuk, Singha & Chaiyasoonthorn, Wornchanok, . "Sustainability of Rubber Farmers Cooperatives: Empirical Evaluation of Determining Factors," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4).
    7. Mario Vaupel & David Bendig & Denise Fischer-Kreer & Malte Brettel, 2023. "The Role of Share Repurchases for Firms’ Social and Environmental Sustainability," Journal of Business Ethics, Springer, vol. 183(2), pages 401-428, March.
    8. Bouyaddou, Youssef & Jebabli, Ikram, 2025. "Integration of investor behavioral perspective and climate change in reinforcement learning for portfolio optimization," Research in International Business and Finance, Elsevier, vol. 73(PB).
    9. Amal Aouadi & Sylvain Marsat, 2018. "Do ESG Controversies Matter for Firm Value? Evidence from International Data," Journal of Business Ethics, Springer, vol. 151(4), pages 1027-1047, September.
    10. Sana Ben Abdallah & Dhafer Saidane & Sami Ben Mim, 2024. "The impact of governance on environmental performance: evidence from African countries," Economics Bulletin, AccessEcon, vol. 44(1), pages 122-139.
    11. Marc-Arthur Diaye, 2023. "How does CSR affect workers’ compensation? An approach by the theory of incentive [Comment la RSE affecte-t-elle l’indemnisation des accidents du travail ? Une approche par la théorie de l'incitation]," Post-Print hal-04676837, HAL.
    12. Sun, Wenbin & Price, Joseph & Ding, Yuan, 2019. "The longitudinal effects of internationalization on firm performance: The moderating role of marketing capability," Journal of Business Research, Elsevier, vol. 95(C), pages 326-337.
    13. Yue Vaughan & Yinyoung Rhou & Yoon Koh & Manisha Singal, 2024. "Slack resources and employee-centered corporate social responsibility in restaurant companies," Tourism Economics, , vol. 30(3), pages 592-614, May.
    14. Arfaoui, Nadia & Naeem, Muhammad Abubakr & Boubaker, Sabri & Mirza, Nawazish & Karim, Sitara, 2023. "Interdependence of clean energy and green markets with cryptocurrencies," Energy Economics, Elsevier, vol. 120(C).
    15. Mercedes Rubio-Andrés & Santiago Gutiérrez-Broncano & Jorge Linuesa-Langreo & Miguel Ángel Sastre-Castillo, 2025. "Exploring the reality of corporate sustainability strategy and sales performance in entrepreneurial SMEs: the mediating effect of innovation and sustainability performance," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-34, December.
    16. Saurabh Mishra & Sachin Modi, 2013. "Positive and Negative Corporate Social Responsibility, Financial Leverage, and Idiosyncratic Risk," Journal of Business Ethics, Springer, vol. 117(2), pages 431-448, October.
    17. Lucy W. Lu, 2021. "The moderating effect of corporate governance on the relationship between corporate sustainability performance and corporate financial performance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(3), pages 193-206, September.
    18. Prof. A. N. NWAOBIA & Omoniyi Oluwabusayo samuel, 2025. "Sustainability Practices and Financial Performance in Listed Manufacturing Companies in Nigeria. (A comparative Analysis of Cadbury and Nestles)," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 12(5), pages 900-913, May.
    19. Gu, Ming & Hirshleifer, David & Teoh, Siew Hong & Wu, Shijia, 2025. "GIFfluence: A Visual Approach to Investor Sentiment and the Stock Market," MPRA Paper 127438, University Library of Munich, Germany.
    20. Saliha Karadayi-Usta & Erfan Babaee Tirkolaee, 2023. "Evaluating the Sustainability of Fashion Brands Using a Neutrosophical ORESTE Approach," Sustainability, MDPI, vol. 15(19), pages 1-17, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:engenv:v:37:y:2026:i:1:p:266-281. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.