Adika’s failure reduced Golf’s net profit in the third quarter

by time news

With a slight increase in revenue and a decrease in net profit, Group golf Summarizes the third quarter of 2021. The group’s sales, which appointed the fashion chain, the home product chain and Adika, amounted to NIS 235 million. This is an improvement of NIS 5 million (2%) compared to the corresponding quarter last year.

The group, which currently includes 310 physical stores, notes that “the increase was partially offset by the closure of Topshop activity and a decrease in revenues from the Adika activity area, and a decrease in revenue per square meter of home fashion stores.” The net profit in the third quarter amounted to NIS 6 million (constituting 2.6% of revenues), compared with a profit of NIS 11 million in the corresponding quarter last year.

Revenues from sales of the clothing and home fashion segments amounted to NIS 193 million in the quarter, an increase of 7% compared to the corresponding quarter last year. Of this, the home sector reflected about 57% of sales – in line with the continuing trend from the closure period, of home equipment purchases and especially the kitchen.

The group also reports that its online activity has grown, owning 6 online sites, one of which is of the fashion brand Adika, which has presented disappointing findings over the recent period, and unlike competing sites that have shown growth in the face of the surge in online shopping.

Sales Adika (Including physical stores) amounted to NIS 42 million in the third quarter, compared with NIS 50 million in the corresponding quarter last year. The company explains 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 light of this, Golf emphasizes that “Adika is in the midst of an overall process to improve its gross and operating profitability, which is expected to last for several quarters, and is expected to be reflected mainly in the coming quarters.”

At the same time, Golf announced an interim dividend of NIS 10 million.

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According to Eyal Greenberg, the company’s CEO and chief business officer, “Golf continues to show good results in the areas of apparel and home fashion. These results have been achieved mainly thanks to the preservation of the streamlining processes we have carried out over the past year, along with the expansion of online activity. We also continue to work to expand and improve the technological infrastructure and improve the logistics system. “

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