Founded in 2008 and based in Vila Nova de Famalicão, Red Street Têxteis manufactures knitted garments for men and women, working exclusively on a private label basis. The company exports all of its production, with Denmark, Sweden, Norway, Austria and Germany as its main markets.
Its presence in the Scandinavian markets stems from a relationship established when the company was founded, with someone who was previously an agent and now works as a salesperson. «At present, it is as though we have our own office in Copenhagen, Denmark», says Carlos Cardoso, CEO of Red Street Têxteis.
Around 80% of production is womenswear, with the remaining 20% comprising menswear. The company works exclusively with knits, mainly circular knits, only using woven fabrics when requested by customers. Red Street Têxteis carries out product development, pattern making, cutting, finishing and packaging in-house, while garment manufacturing is subcontracted to Portuguese partners. Its suppliers of knitted fabrics and accessories are mainly based in Portugal, although some accessories are sourced from China.
The company works with different fibres, particularly organic cotton and blends with lyocell, modal and wool. It has held Organic Content Standard (OCS) certification for two years and has Sedex Members Ethical Trade Audit (SMETA) certification relating to working conditions.
In 2025, it recorded turnover of 1.2 million euros, around 17% below 2024, a year Carlos Cardoso describes as «extraordinary». The start of 2026 was also below expectations. «The beginning of 2026 was difficult. We are slightly below our target», the CEO acknowledges. For the first quarter, the company aimed to generate turnover of around 400,000 euros but achieved approximately 340,000 euros.
According to Carlos Cardoso, uncertainty is affecting purchasing decisions. «Customers are operating very cautiously, delaying orders, pushing everything back, buying less and repeating more items in smaller quantities», he explains. For 2026 as a whole, the company expects to maintain turnover of between 1.2 million and 1.3 million euros.
Debuts and investments
Participation in Intertex, held in May at Exponor, marked the company’s debut at industry trade fairs and forms part of its growth strategy through the acquisition of new customers. «We are trying to broaden our reach slightly, seeking new contacts and markets as a way of growing», says the CEO of Red Street Têxteis. Austria, France, Germany and Spain are among the priority markets for this expansion.
With a team of 10 employees, the company is also assessing an investment in an automatic cutting machine to replace its current semi-automatic system. However, the decision has been postponed due to the current market context.
Competitive pressure is among the main challenges identified. «The difficulty is price, which is always a tremendous battle because we face very strong competition, particularly from Turkey», says Carlos Cardoso. «Customers often say that Portugal is in fashion, that they want to buy in Europe and especially in Portugal. But when it comes down to it, we are 30% to 40% more expensive than Turkish suppliers», he adds.
To respond to this situation, Red Street Têxteis focuses on production flexibility, accepting small orders with minimum quantities of between 50 and 60 pieces. «That is the niche where we need to be and, logically, with new brands – that is where we can grow», the CEO concludes.
