Fox fashion group surprises with NIS 90 million net profit in the 2nd quarter

The Fox fashion group, controlled by the Wiesel and Fox families, posted record profits in the second quarter of 2020 - NIS 90 million - despite the Corona crisis, and after the group's CEO Harel Wiesel pledged TV studios for government assistance to its battered businesses. Amounted to NIS 52.6 million, compared with a net profit of NIS 48.7 million in the corresponding period in 2019.
The group's revenues decreased in the second quarter of 2020 by 2.5% - and amounted to NIS 633 million, compared with NIS 648 million in the corresponding quarter in 2019. Gross profit in the second quarter of the year amounted to NIS 384.3 million, about 60.7% of sales, compared to gross profit of NIS 373.7 million, which is 57.7% of sales in the corresponding quarter last year - an increase of about 3%.
Fox's operating profit in the second quarter amounted to NIS 126.3 million - 19.9% ​​of sales, compared to NIS 84.5 million, 13.1% of sales in the corresponding quarter last year - a jump of 50%. Operating profit excluding accounting standard IFRS amounted to NIS 118.3 million, compared with NIS 77.4 million in the corresponding quarter in 2019 - a sharp increase of 53%.
Operating profit in the first half, excluding IFRS 16, amounted to NIS 86.1 million, about 7.1% of sales, compared with operating profit of NIS 75.1 million, 6.5% of sales, in the corresponding half of 2019 - an increase of approx. 15%. As of the end of June, the Fox Group had cash balances (and cash value) of more than NIS 1 billion.
In response to the publication of the financial reports, the Fox share has jumped by about 8%. Since the beginning of the month, the share has jumped by about 40%. The group's value has risen to about NIS 2.3 billion.
In June, Fox announced the distribution of a NIS 50 million dividend to its shareholders - after Wiesel acted to obtain government support for his business (including all businesses in the country). Wiesel's pressure paid off, and Fox - which at the time held NIS 1 billion in cash - was supposed to receive state grants in the amount of NIS 18-13 million, not including additional benefits. However, following the protests that arose, the criticism on social media and the threat of a consumer boycott - Fox folded, and decided to give up the grant.