Golf's third Quarter revenues: NIS 236 million

Golf's financial statements release a disappointing third quarter that indicates the instability suffered by the fashion company, which has been controlled by Clal Industries for a long time. Bottom line, after signs of optimism that golf broadcast in the previous quarter, where it went from a loss to a profit, now, in the third quarter, it increased its losses three times, which accumulated to about NIS 6.5 million.
Earnings in the previous quarter offset some of the losses recorded in the first and third quarters, so that golf's losses totaled about NIS 5 million at the beginning of the year, compared with a balanced bottom line that showed in the same period in 2018.
Golf divides its activity into three sectors - apparel fashion, home fashion, and Adika subsidiary fashion activity, which supported a 6% improvement in its quarterly revenue, to NIS 236 million. Golf also showed a positive trend in its gross profit, but failed to improve its sales rate, due to an increase in the percentage of discounts it gave to its products.
On the way to the bottom line, golf has been hit by the new accounting standard regarding leasing assets (IFRS16), which has significantly increased its financing expenses, but even neglecting Golf's quarterly bottom line remains negative, with a loss of close to NIS 4 million.
In segmenting its activities, both the apparel fashion segment and the home fashion segment exhibited stable quarterly sales volume. In the dressing operations, the operating line remained negative, but losses from it were reduced, partly due to the effect of the new accounting standard, while operating profit from home fashion activities eroded.
In the apparel and home fashion sector, golf shows a 2.5% increase in average revenue per square meter in identical stores in the third quarter of 2019, while the fashion market measured by RIS reported a 2.7% erosion in the quarter. In the apparel sector, identical stores show a 1.7% increase, while in the same area stores Home fashion growth was about 3%, which, unlike the market's decline, made golf at the price of deep discounts that allowed it to increase its market share.
Although the low tide that was set last May golf share has climbed by about 40%, it has been suffering for a long time, showing a 20% erosion from the beginning of the year and reflects a current value of NIS 130 million to the company.