Profit warning for Adika: Prior to the publication of the financial statements for 2021 as a whole and for the fourth quarter of the year later this month, the fashion retailer reported to the stock exchange last night (Sunday) that due to damage to the company’s inventory and sales, it expects a loss of 53-56 million in the coming annual reports. NIS. The report also states that the fourth quarter of 2021 is expected Adika Record a loss of NIS 25-28 million, compared to a net profit recorded in the corresponding quarter in 2020.
The company also wrote in the report that it estimates that the volume of sales for 2021 will be about NIS 181 million, compared to NIS 193 million in 2020, and that sales in the fourth quarter of 2021 will be about NIS 43 million, compared to NIS 59 million in the previous year.
Adika notes that these losses are due to the termination of services between the company and golf , From a provision for impairment of inventory, a decrease in the rate of gross profit due to a sale at lower than usual prices and from a provision for impairment of assets. According to Adika, they are examining the strategic alternatives available to the company.
Adika also presented weak data in the previous quarter. Its sales in the third quarter of 2021 amounted to NIS 42 million, compared with NIS 50 million in the corresponding quarter in 2020. The company explained at the time that “the decrease is mainly due to a decrease in sales of operations in Israel, and was partially offset by an increase in sales of international operations.”
In the past year, Adika has experienced a wave of departures. In December, Liat Weisbrod left the company, six months after she was appointed marketing director. Earlier, a number of senior executives at the company left, shortly after interim CEO Roi Hasel, who served in the position for about a year, left. In June, the vice president of business development, product manager and technology director left. This wave continued the departure of senior executives in 2020, with CFO Yishai Shema. In May 2020, there was a turning point when Dedi Schwarzberg, who served as CEO of Adika, and who was one of the company’s founders, left.