Castro-Hoodies Group reported a robust third quarter for 2025, with revenues rising 11.4% to NIS 565.5 million, compared to NIS 507.6 million in the same period last year.
Revenues for the first nine months of 2025 increased 4.1% to NIS 1.54 billion, despite the negative impact of the “With a Dog” (Am Kalavi) protest days, which forced temporary store closures.

The revenue increase was driven by expansion of store count, higher same-store sales, and continued resilience in the fashion and accessories segments.

Same-Store Sales Up 6.8% in Q3

Same-store sales across all brands—including online—rose 6.8% in Q3 to NIS 501.9 million, compared to NIS 470 million in Q3 2024.

Segment performance:

• Fashion apparel: +6.2%

• Fashion accessories: +8.5%

• Cosmetics: –11%

For the first nine months of 2025, same-store sales climbed 5.1% to NIS 1.308 billion.

Revenue per Square Meter Shows Mixed Trend

• Q3 2025: NIS 2,057 per sqm (+5.6%)

• Jan–Sept 2025: NIS 1,936 per sqm (–0.2%)

Revenues from the core fashion apparel segment rose 10.5% to NIS 360.5 million.
Growth stemmed from expanded Urbanica and Hoodies footprints, offset partly by a reduction in Castro store count.

Operating profit surged 79.4% to NIS 20.9 million, compared to NIS 11.6 million last year.

Brand Breakdown

• Urbanica + Hoodies: Revenues up 11.1% to NIS 203.8 million

  • Urbanica: NIS 122.8 million

  • Hoodies: NIS 81 million

• Castro: Revenues up 9.7% to NIS 156.6 million

  • Castro operating profit: NIS 5 million, compared to a NIS 13.1 million loss last year

Revenues Up 12.5%

The fashion accessories segment delivered NIS 177.8 million in revenue, up 12.5% year-on-year.
Gross profit increased 11% to NIS 112.2 million, while operating profit rose 6.8% to NIS 31.9 million.

Cosmetics and skincare revenues totaled NIS 20.1 million, a 3% decline from last year.
Operating profit fell to NIS 601,000, down from NIS 2.4 million, due to:

• Lower same-store sales

• Higher purchasing costs

• Increased discounting

• Higher payroll, marketing and advertising expenses

Gross Profit and Operating Profit Rise in Q3

Gross profit for Q3 2025 increased 12.6% to NIS 322.5 million, representing 57% of revenue.
Operating profit climbed 28.9% to NIS 53.3 million, up from NIS 41.3 million last year.

For the first nine months, operating profit reached NIS 133.6 million, compared to NIS 150.5 million last year—affected by an estimated NIS 35 million profit loss due to the “With a Dog” campaign shutdowns.

Net profit in Q3 2025 rose to NIS 25 million, compared to NIS 16.3 million last year—a sharp 53% increase.
For the first nine months, net profit reached NIS 48.3 million, versus NIS 76.9 million in the corresponding period.

Cash Flow Strengthens; Liquidity Remains High

Net operating cash flow in Q3 totaled NIS 72.8 million, compared to negative NIS 9.9 million last year.

As of September 30, 2025:

• Cash and equivalents: NIS 341 million

• Cash surplus over financial debt: NIS 248 million

Despite geopolitical disruptions and sectoral headwinds in cosmetics, Castro-Hoodies Group delivered a strong third quarter, driven by apparel and accessories performance, improved margins, and solid liquidity—positioning the company for a positive end to 2025.