Harel Wiesel (Photo by Dima Tliansky)
Harel Wiesel bombs, there is no other way to present Wiesel’s performance in 2021. The Fox Group ended 2021 with revenues of no less than NIS 4.2 billion and it should be remembered that these are sales of Basic clothing, Mango franchises, Nike operations in Israel and abroad , Activity tipped and so on.
Sales of this magnitude are reserved for giant companies like Azrieli, Melisron, Banks and so on. Sales of this magnitude to a consumer goods company are rare on any scale. But we will reserve the things that 2021 was a rare year in the Israeli (and global) economy, an economy that was released like a spring after 2020 which was a year of closures and a constant flow of money from governments to the public.
More in-
One way or another, the magnitude of Harel Wiesel’s achievement in 2021, which suddenly became the living spirit behind Israel’s central retail group, cannot be underestimated.
Let’s go back to the numbers:
The Group’s revenues in 2021 (from the sectoral report based on 100% of activity and before adjustments) amounted to NIS 4.4 billion, an increase of 43.1% compared to the corresponding period last year. Data on identical store sales (during periods when stores were fully open) excluding closing periods increased in 2021 compared to the same period in 2019 in the fashion and home fashion sector by 17.1%, the atmosphere and grooming sector by 19.5% and in the sports sector by 33.2%.
Gross profit in 2021 amounted to NIS 2.5 billion, which is about 58.7% of sales, compared to last year’s gross profit of NIS 1.6 billion, which is about 56% of sales, an increase of NIS 901.2 million.
The company says today that the improvement in gross profit was mainly due to the long period of closure last year and a decrease in purchasing costs due to the weakening of the average exchange rate of the dollar against the shekel, offset by an increase in maritime transportation costs from the Far East.
Operating profit in 2021 amounted to NIS 561.7 million and constitutes 13.4% of sales, compared with an operating profit of NIS 409.2 million last year, which accounted for 14.6% of sales. Operating profit in 2021, excluding IFRS 16 and revaluation, amounted to NIS 518.3 million, and constitutes approximately 12.3% of sales. Compared with last year’s operating profit of NIS 235.9 million, which constitutes about 8.4% of sales in the corresponding period last year, an increase of NIS 282.4 million.
The increase in operating profit is mainly due to the increase in sales in the same stores and the increase in the gross profit margin. The net profit in 2021 amounted to NIS 364.3 million, compared with a net profit of NIS 202.4 million last year.
The 2021 reports also include a one-time effect that eroded profits and is due to financing expenses in respect of the revaluation of an option by Leumi Partners to purchase approximately 10% of the shares in Retailers.
Harel Wiesel said with the publication of the reports that: “The Fox Group is finishing a record year both in terms of business results, both in terms of completing two successful issues of two excellent companies in the group and in the continuation of the group’s strengthening abroad. We are exploring additional activities and opportunities on an ongoing basis and in the coming year we will continue to expand in order to implement our vision to be one of the largest retail groups in the world.
“In December 2021 we reported a principled agreement with Mango Spain to open mango stores in Canada which we will start opening this year and at the same time we are working to open a number of Fox Home stores in Toronto.
In January 2022 we signed an agreement in principle with American Eagle and we are considering a joint opening of retail and wholesale activities including online under the American Eagle Offline and Aryan brands in several European countries.
“In Israel, together with Hot, we opened 5 stores under the red brand. At the beginning of 2022, we launched the first 6 stores of the Flying Tiger brand and at the same time we are working on opening the first Jumbo store towards the end of the year.”
Comments on the article(0):
Your response has been received and will be published subject to system policies.
Thanks.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment