| Polly Tal, Investing.com Israel
Israeli fashion companies have recently announced their financial results for the third quarter of 2021, and the effects of the corona crisis are still being felt in their reports. In the quarter in which all the Tishrei holidays took place, morbidity was high after the start of the school year and restrictions were placed on gatherings, which were reflected, among other things, in the decrease in the number of shoppers in malls and shopping centers.
Compared to the same period in 2020, when stores were completely closed and closures were imposed across the country, some of the companies report revenue growth, but supply chain problems and Corona outbreaks in various territories where fashion companies produce and operate clouded results this quarter as well.
The fashion company Golf (TASE 🙂 concluded the third with a slight increase of only 2% in its sales, which amounted to about NIS 235 million, compared to NIS 230 million in the corresponding quarter last year. Revenues from the apparel sector increased by 17% to NIS 83 million, and net profit attributable to shareholders decreased from NIS 11 million in the previous quarter to NIS 8 million in the current quarter.
Golf’s share this year enjoyed the relative improvement in the company’s results compared to the difficulties that characterized 2020 and jumped by 95.1% since the beginning of the year, bringing the company to a market value of about NIS 408 million.
Following the publication of the reports, Eyal Greenberg, CEO of Golf, stated that the results were achieved thanks to the expansion of the company’s online operations to 6 online sites, as well as actions to expand and improve the technological infrastructure and improve the logistics system.
Golf’s subsidiary, Adika (TASE :), presented reports, in which it reported a 16% decrease in sales, which amounted to NIS 41.6 million, compared with NIS 49.6 million in the corresponding period.
The company presented an operating loss that affected the net profit and resulted in a loss of NIS 5.8 million, compared with a small profit that it reported in the corresponding quarter, which was NIS 74,000.
Adika faced logistical problems this quarter and reported in the reports that the company had exhausted its existing logistics infrastructure, following the closure of the US Logistics Center and moved to using external infrastructure, which led to an increase in expenses in this section. Adika’s investors were not satisfied with the company’s performance, to say the least, and the stock has plunged at a rate of 73.09% since the beginning of the year, bringing it to a value of only NIS 95 million.
Castro (TASE :), on the other hand, actually increased its revenues by 20% to NIS 424 million, compared to NIS 353 million in the corresponding quarter last year. Despite this, the company’s net profit in this quarter fell by 47% to NIS 22 million compared to NIS 41.3 million in the corresponding quarter, but notes that this is a decrease due to real estate realization in the corresponding quarter, which neutralized net profit growth of 1.5 times the quarter The corresponding.
Castro is also concerned about the continued spread of the corona virus in the territories in which the group produces, which could affect the availability of its sources of production. The company currently has 370 stores and stalls in Israel, and it also owns the brands Hoodies, Urbanica, Carolina Lemke, Kiko Milano and Top Ten.
Castro’s share soared by 116.62% this year and its market value now stands at about NIS 860 million.
Another fashion reporter is Retailers (TASE :), which is owned by Fox (TASE :), a company that sells footwear and fashion products, through the operation of Nike (NYSE 🙂 stores, Pot Locker, and Dream Sports in Israel, Canada and Europe.
Retailers finished the third with a 61% jump in revenue to NIS 341.6 million, compared to NIS 212 million in the corresponding quarter last year and a 49% increase in net profit to NIS 32 million. In the reports, the company explains that most of the increase in revenue came from the opening of new stores and retail space in Europe for the Nike and Pot Locker brands, and in Israel in the Dream Sport chain.
In the six months that have passed since the company’s IPO on the Tel Aviv Stock Exchange in May this year, Retailers’ share has risen by 71.66% and its market value has jumped to NIS 5.2 billion.