Taking on Fast Fashion With Leather Bags Made From Luxury Brand Scraps

Dana Cohen witnessed the meteoric, and frightening, rise of fast fashion working for apparel companies in New York City for over a decade.

“We went from designing unique, thoughtful products to chasing trends and everything started to look the same,” recalls Cohen, 41, who was born and raised in Florida but now lives in Brooklyn with her family. “I watched fabrics get ordered and never be used and garments piling up on sales racks. We were drowning in fashion excess.”

It was then Cohen realised that she could do something to help while remaining in an industry she loved. “I couldn’t be complicit in the destruction of the planet and knew there had to be a better way to design,” she says.

undefined In November 2019, just a few months before the pandemic, Cohen launched Hyer Goods, a leather accessories company that uses the waste created by other brands—with fabric sourced from deadstock and factory scraps—to make bags, wallets, keychains, and blazers. The name Hyer is a riff on “higher,” or better, design.

Cohen’s mission is simple: to use scrap waste and “turn it into something beautiful.”

THE ITEMS

Hyer Goods focuses on leather because it is “high-quality, durable and can last for generations. The last thing we’d want to do is create more things that just end up in a landfill,” Cohen says. She launched an accessories brand, meanwhile, because accessories are small. “Focusing on small goods enables us to maximise the waste available. We even use the cutting waste to make our small leather goods, like card wallets and watch bands.”

Items include the ’90s-style luxe medium shoulder bag, which comes in colours like white and bright red and crocodile texture. There is also the luxe camera bag—available in a bright pop of fuschia pink and more neutral tones, such as camel—and the pocket cube bag, an everyday satchel with a canvas front pocket.

Hyer Goods also sells a deadstock leather blazer in a relaxed fit in black, chocolate and camel, and phone slings and wallets, as well as a handful of knitwear items, including the “salvaged angora scarf” and “a better beanie,” both created using leftover materials such as angora and merino yarn.

Cohen’s favorite style, however, is the luxe mini bucket bag, which comes with two different removable straps.

“It’s both classic and iconic in design,” she says. “I love that it converts from a crossbody to a handheld bag which enables me to wear it anywhere from errands to a wedding.”

Hyer Goods is currently selling a limited-edition, made-to-order Hello Adrianne hand-painted canvas bucket bag, featuring either a pair of tomatoes or a piece of farfalle pasta. A collaboration with the American artist Adrianne, dubbed “the tomato girl” for her depictions of canned tomatoes and other Italian foods, each bag is hand-painted in New Jersey.

Hyer Goods uses deadstock materials, discarded by luxury brands, which reduces the energy footprint needed to breed livestock
Lena Shkoda

“A good-quality bag can last for generations. I love the idea of creating heirloom products that can be handed down,” explains Cohen. “It’s the antithesis to fast fashion. I cherish some of my mom’s old bags, and I hope these bags have a similar future.”

THE PRICE

Many of the bags mentioned are priced around US$300, give or take. The deadstock leather blazer is US$375. The salvaged angora scarf is US$120, and the better beanie is US$75.

Besides shopping online, customers can also pop into the Hyer Goods store located on a quaint street in New York’s West Village.

WHAT’S THE GOOD?

Each year, 6.3 million tons of textiles are discarded in the fashion industry; in accessories, up to 15% of leather can be wasted due to the material’s natural defects, according to the Hyer Goods website. Most bag brands use either new leather, whose harvesting is bad for the environment, or vegan leather. Vegan leather may be animal-free, but it contains substantial amounts of plastic, does not wear well, and can take centuries to degrade.

By contrast, Hyer Goods uses deadstock materials, discarded by luxury brands, which reduces the energy footprint needed to breed livestock, as well as the waste sent to landfills. “In addition to using upcycled materials, every decision we make is made with the planet in mind, from our packaging choices to our designs,” says Cohen.

The company uses veg-tanned leather skins and tries to source leather made in Italy, directly from factories. Any canvas used, meanwhile, is deadstock, while the knits are made from luxury yarn leftovers, sourced locally in New York. Every supplier, meanwhile, must agree to the Hyer Goods Supplier Manual, which includes compliance with human rights laws.

WHAT’S NEXT?

Cohen says her goal from the start was to create the highest-quality goods out of waste.

“While we’re already using incredible Italian leathers and other luxury leftovers, I’m excited to announce some new sources of waste that are coming from the most exclusive, high-end brands in the world,” says Cohen. “In order to keep emissions as low as possible, we’ve developed an entire new supply chain in Italy, where the waste exists, and will be debuting a Made in Italy collection utilizing the world’s best leftover leathers soon.”

Reporting season has once again reminded investors that a strong profit does not guarantee a rising share price, and a large loss does not always trigger a sell-off. What matters most is how each result compares with expectations and, increasingly, what management says about the year ahead. During the August 2026 season, companies offering credible turnarounds or unexpectedly strong guidance were rewarded handsomely, while those flagging weaker margins, slowing demand or greater uncertainty were punished.

The following ranking draws on Morningstar’s review of 164 ASX-listed companies and measures each company’s share-price movement on the day it reported. This captures the market’s immediate response to the earnings announcement, before subsequent economic developments, dividends and company-specific news cloud the picture. Here are the five biggest winners, and the five hardest-hit losers, of the season so far.

The five winners

1. Bapcor (ASX:BAP): +41.0%

Bapcor delivered reporting season’s largest relief rally after presenting early evidence that its troubled automotive-parts business was stabilising. Although underlying revenue fell 1.8% to $1.92 billion and underlying NPAT collapsed 85% to $10.8 million, underlying EBITDA of $152.5 million exceeded guidance.

More importantly, working-capital initiatives released $68.5 million in the second half, lifting cash conversion to 109.4% and reducing net debt by 63% to $135 million. The statutory loss was $431.6 million, largely because of non-cash impairments. Investors focused on improving operational momentum, stronger liquidity and management’s expectation of modest FY27 revenue growth.

2. Zip Co (ASX:ZIP): +18.2%

Zip comfortably surpassed its FY26 targets, sending the buy-now-pay-later provider’s shares sharply higher. Transaction volume rose 23% to $16.7 billion, while cash earnings before tax, depreciation and amortisation jumped 58% to a record $268.9 million. Statutory profit climbed 46% to $116.4 million, and the cash operating margin expanded by 4.2 percentage points to 20%.

The strongest signal was guidance for FY27 cash earnings of $340 million—around 26% growth and above analysts’ forecasts. US transaction volume increased 42.5% and now represents three-quarters of group volume, offsetting weaker customer activity in Australia.

3. CSL (ASX:CSL): +17.3%

CSL’s result was hardly spectacular in isolation, but it cleared a market bar that had fallen dramatically following earlier downgrades and restructuring announcements. Underlying NPATA was US$3.1 billion, down 2% in constant-currency terms, while operating cash flow reached US$3.51 billion.

CSL maintained its full-year dividend at US$2.92 per share and completed a A$1 billion buyback. The real catalyst was FY27 guidance for approximately 5% underlying profit growth, compared with market expectations closer to 2%. After an extended period of earnings disappointments, investors interpreted the outlook as evidence that CSL’s core plasma business was approaching a sustainable recovery.

4. Judo Capital (ASX:JDO): +16.9%

Judo Capital demonstrated strong operating leverage as its specialist business-lending franchise expanded. Full-year profit before tax rose 34% to $168.1 million, while pre-provision profit increased 42%. Gross loans and advances grew 18% to $14.7 billion, reaching the top of the bank’s guidance range and comfortably exceeding broader system growth.

Deposits increased 24% to $12.2 billion, return on equity improved by 1.1 percentage points to 6.4%, and earnings per share rose 29% to 9.9 cents. Reaffirmation of the FY27 outlook gave investors confidence that loan growth could continue without sacrificing margins or credit quality.

5. Super Retail Group (ASX:SUL): +15.8%

The owner of Supercheap Auto, rebel, BCF and Macpac reported record sales of $4.2 billion, up 3.2%, despite cautious discretionary spending. Profitability went backwards: normalised profit before tax fell 7% to $306 million and normalised NPAT declined 2.8% to $226 million as transformation spending weighed on margins. Nevertheless, the result exceeded subdued expectations, online sales grew 5.3% and membership across the group’s loyalty programs reached 13.1 million. Investors were also encouraged by positive early FY27 trading, stable gross margins and continued market-share gains. A fully franked 33-cent final dividend added to the appeal.

The five losers

1. Hansen Technologies (ASX:HSN): –21.2%

Hansen’s historic result met expectations, but investors recoiled from its outlook. The utility and communications software provider achieved an underlying EBITDA margin of 31%, exceeding its 30% target, while generating strong cash flow. However, management designated FY27 an “investment and transition year”, signalling a roughly five-percentage-point margin contraction as spending on products, sales capabilities and organisational changes increased.

Revenue had already been broadly flat, leaving investors concerned that the investment program would depress earnings before new growth appeared. Leadership changes, including the chief executive’s departure, added uncertainty. Management expects revenue growth and margins above 30% to return in FY28, but the market was unwilling to wait.

2. Life360 (ASX:360): –19.4%

Life360’s headline growth was impressive: quarterly revenue rose 38% to US$159 million, subscription revenue increased 31%, and adjusted EBITDA climbed 53% to US$31.1 million. Monthly active users reached 102.4 million and paying circles grew 27% to 3.2 million. The sell-off reflected expectations rather than a collapsing business.

Net income fell 18%, the net margin contracted from 6% to 3%, hardware shipments dropped 18%, and full-year EBITDA guidance was merely maintained. After a strong valuation run, investors wanted a larger upgrade and clearer evidence that heavy investment in advertising, international expansion and artificial intelligence would generate additional earnings.

3. PEXA Group (ASX:PXA): –17.0%

PEXA reported a 7% increase in continuing-operations revenue and 12% EBITDA growth to $152 million, accompanied by a two-percentage-point margin expansion. Free cash flow increased 39%, suggesting the core Australian electronic-conveyancing platform remained highly profitable. Investors instead concentrated on management’s warning that property-transfer volumes could decline, alongside regulatory uncertainty surrounding the fees PEXA can charge.

The company is also continuing to invest heavily in its loss-making international expansion. Morningstar considered the market reaction excessive, arguing that structural transfer-volume assumptions had not materially changed, but the combination of softer near-term activity and regulatory risk overwhelmed the respectable headline numbers.

4. SEEK (ASX:SEK): –14.3%

SEEK produced solid FY26 figures, including 10% revenue growth to $1.20 billion, a 15% rise in EBITDA and 28% growth in adjusted earnings per share. It also lifted its fully franked annual dividend by 13% to a record 52 cents. Those achievements were overshadowed by falling paid job-ad volumes and cautious FY27 assumptions.

The statutory accounts included a $201 million loss from the SEEK Growth Fund and $377 million of significant items, making the headline result considerably less attractive. Investors were particularly concerned that economic weakness could limit volumes while the company continued investing in platform integration and artificial-intelligence products.

5. JB Hi-Fi (ASX:JBH): –12.3%

JB Hi-Fi’s full-year result was broadly respectable, with group sales rising 5% to $11.1 billion and underlying earnings per share increasing 6% to $4.48. The damage came from its current-trading update. Australian sales were almost flat during the June quarter and deteriorated further in July, while earnings in the core Australian electronics business fell 3.6%.

Housing-related categories were particularly weak as higher living costs and interest rates constrained household budgets. With JB Hi-Fi entering the season on a demanding valuation, an in-line historic result was not sufficient: the loss of sales momentum prompted investors to rapidly reduce their expectations for FY27.

Overall, the season showed that share prices react less to whether profits rose or fell than to the gap between results and expectations. Bapcor was rewarded for being less troubled than feared, while several fundamentally profitable companies were punished because their outlooks failed to justify elevated valuations.