Coats has issued a Q1 trading statement for the four months to 30th April, key takeaways include... Group organic revenue growth came in at 4%, compared to our forecast of 5.6% for H1 (no Consensus), with Apparel delivering 5% organic revenue growth; Footwear 5%, and Performance Materials (ex-Yarns) 0%. Within this, we believe that China was a little weaker, likely due to tariff related uncertainty, while other territories such as Vietnam, Indonesia and Central America were stronger. Apparel benefited from customers higher preference for premium threads, while Footwear was impacted by weaker demand from luxury brands. We understand that momentum within Coats'' recycled threads business remains strong. In terms of guidance, Coats appears cautious on the final couple of months trading in H1. While absolute revenue should remain at recent levels, tougher comps will likely cause YoY growth to slow. We now see Consensus moving lower for H1 organic sales growth, from c. 4% to 2%, implying no growth in the final two months to June. Growth is still expected for FY25e, implying a reacceleration from May-June levels of growth will be needed. FX is set to have a c. -2% impact on H1 sales. At current exchange rates the FY25e impact is likely to be c. -1%. The previously announced sale of Coats'' US Yarns business will now drive deconsolidation from 1st January 2025. Not all of Consensus fully reflects this change. Roughly speaking it should reduce annual revenues by c. USD68mn and adjusted operating profits by USD3mn. While management''s message on sales growth may drive a small cut to Consensus revenues, the outlook for profitability is more upbeat. The Company now sees a first half adjusted EBIT margin within its medium-term target range of 19-21%, supported by the exclusion of Yarns which likely has a positive impact of c. 60-80bps, and internal actions on price, procurement and productivity which should deliver a further 80bps. We would therefore expect...