Kastro lost NIS 48 milion in the first Quarter

Kastro, The fashion company of the Roter family published its first-quarter financial results, showing a drop in revenues as losses widened.
According to the pro forma report, which presents financial data assuming that the Hodis group was fully consolidated in the financial statements in the corresponding quarter last year, the fashion group ended the first quarter of 2019 with a loss of NIS 48 million, compared to a loss of NIS 1.6 million in the first quarter last year.
The group's revenues fell 14% to NIS 369 million. The decline was reflected in the two operating segments of the group - the clothing sector, which includes fashion and cosmetics brands, Yves Roche, Kico Milano and the online site Lladilla, recorded a 18.8% drop in identical stores sales by 18.8%, and the fashion accessories sector including Toften, And Urbanica, recorded a decline of 9.7% in identical stores.
The Group's gross profit fell 18.8% to NIS 194.6 million compared to NIS 239.8 million in the corresponding quarter, and its sales dropped to 52.7% compared to 56% of sales in the parallel quarter. The erosion in gross profitability stemmed from an increase in the rate of discounts and an increase in the exchange rate of the dollar against the shekel compared to the corresponding quarter last year.
Castro posted an operating loss of NIS 46.8 million in the quarter, compared to NIS 1.46 million in the same period last year.
 In the course of 2019, the Group's brands in Israel were joined by five stores - two Castro stores, and one store of the brands Urbanica, Kico Milano and Ives Roche. At the same time, nine stores of the Group's brands were closed during this period, of which 3 are Castro brand stores, 2 are Top Ten brands, 3 are Hodis brand stores,
Lina Lemka.