Fox Group concluded the third quarter of the year with a 42% decrease in net profit compared to the corresponding quarter last year to NIS 50.3 million.
In the top line, the company recorded record revenues of approximately NIS 1.2 billion, a 10% increase compared to the corresponding quarter last year. The increase is attributed to the increase in trading areas offset by the timing of the Tishrei holidays, which this year were spread over September-October, while last year sales were reflected in the month of September.
The gross profit increased from NIS 657.6 million in the third quarter of last year to a gross profit of NIS 707.2 million in the third quarter of this year. However, the gross profit rate decreased from 57.9% of sales to 57.1% of sales as a result of an increase in the rate of discounts in the network.
The operating profit decreased from NIS 133.8 million in the third quarter of last year to NIS 101.8 million in the third quarter of this year. The decrease in the rate of operating profit compared to last year is due to a one-time expense of approximately 4.8 million shekels for the reduction of OFFLINE stores that were closed this year, an increase in the expenses of setting up activities that have not yet begun to operate, including San Glass and Jumbo in Israel, Mango and Fox Home operations in Canada and American Eagle in Europe, from the decrease in the gross profit rate as well as from high sales recorded last year due, among other things, to the timing of the Tishri holidays that fell last year in the third quarter.
Harel Wiesel said: “We conclude the third quarter of 2022 with record revenues and continue to implement our growth strategy in Israel and abroad. At the beginning of 2023 we will open in Israel the first store of the international Sunglass Hut chain and the first store of the Greek Jumbo chain. Abroad, Beyond the development of the sports brands, in the coming days we will launch the first American Eagle store in Europe and in early 2023 we will open Fox Home and Mango stores in Canada. The Fox Group will continue to examine business opportunities around the world and will act according to its expansion plans in Israel and internationally, along with continuing to strengthen its strategic partnerships.”