Castro: Leap in operating profit to 25 m – capital market

The fashion company

Castro
-2.46%

Base:5,331

opening:5,650

High:5,650

low:5,200

change:21,397

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Reports revenues of NIS 282 million in the fourth quarter, compared to revenues of NIS 471 million in the corresponding quarter last year – a decrease of 40%. Operating profit for the quarter amounted to NIS 25 million, compared with NIS 2 million in the corresponding quarter, an increase of 12.5%.

Castro CEO Ron Rotter recently explained to BizPortal about the company’s streamlining trend: “The streamlining has mostly focused on reducing operational complexity, we have streamlined logistics, store operating costs, and marketing and sales expenses. The streamlining strategy will continue with us going forward. The main change that has allowed us to go through this period in profit Recent, and our efforts to improve the product have been completed and assimilated.I think both in the last quarters that were and in 2021 we come to market both when we are much more efficient, and with a much better product, and the combination of both should allow us to grow and improve profitability rates.

The company’s revenues amounted to NIS 1.2 billion, compared to revenues of NIS 1.7 billion last year. Operating profit amounted to NIS 68 million, compared with a loss of NIS 23.5 million last year. The net loss in 2020 amounted to NIS 13 million, compared with a loss of NIS 85 million last year, excluding Accounting Standard No. 16, the net profit from continuing operations in 2020 is approximately NIS 5.1 million.

Rutter on Life After the Corona Crisis: “We hope that the cycles will return to the pre-corona level, and I hope that there will be growth here. Overall there is strong demand and I hope it will continue with us. I think it can be assumed with a reasonable level of confidence that demand will return to pre-corona levels. “People have not spent money for a long time, people want to go out and spend time, and make up for all the time they have been locked in houses, so I very much hope we see it.”

In the coming year, Castro plans to expand its activities to the field of “home design”, they are expected to open up to 20 Home Styling stores this year, and in the next five years to reach a layout of 50-80 stores. Ron Rotter on expanding the company’s operations: “Over the past year, the Castro-Hoodies Group has continued its activities for expansion and business development. With the opening of trading on February 21, we launched a new format for the Urbanica chain of stores, which will gradually find expression in a wide range of stores.” The Castro brand CASTRO HOME. In the Castro fashion brand, we have developed and launched new fashion categories (RELAXED home fashion and MOTION sports fashion) with the construction of a new design studio and the appointment of new fashion designers. Kiko Milano, Yves Rocher and Top Ten), recorded a record 26 million entries and crossed the NIS 150 million revenue, placing the team as one of the major players in the online sales market in Israel.