Harel Wiesel’s Year; Fox with good results despite the corona – the capital market

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Reports revenues of about NIS 3 billion in 2020, a decrease of about 7.4% compared to last year. Operating profit in 2020 amounted to NIS 409 million, compared with NIS 349 million last year. The net profit amounted to NIS 202 million, compared with NIS 241 million last year. These results are excellent given the “Year of the Corona”, with Fox expanding in Europe along the way and planning to issue its retailer subsidiary Nike.

Revenues in the quarter amounted to NIS 766 million, compared with NIS 864 million in the corresponding quarter. Operating profit for the quarter amounted to NIS 222 million, compared with NIS 115 million in the corresponding quarter. Net income amounted to NIS 96 million, compared with NIS 79 million in the corresponding quarter.

Much of Fox’s success can be attributed to the online trading site “Terminal X” which offers a very significant range of dozens of international brands in the fields of fashion and lifestyle, as well as the private label X-TERMINAL.In 2020, there was significant growth in the activity of the Group’s trading sites, and in particular the X-TERMINAL site, and in the company’s estimation, this trend is expected to continue and even strengthen.

Fox’s success in this challenging year stems primarily from increased online sales, along with a dramatic reduction in spending. The dominant Wiesel fought in the malls and almost reset the rent expenses due to the closures. He also fought in government to get support. His war was “imaginary.” Fox as a gorilla in its field would not have been dramatically hit even in a worse scenario, but Wiesel fights when along the way he also asks for dividends to shareholders (he is a major shareholder). To his credit it can be said that he gave up state support (in part) and also stopped leading the “independence struggle”. To his credit it should also be said that he acted all the time – even when he received criticism from the media and the public – for the benefit of Zello shareholders. This is the reason why he was chosen to be BizPortal’s Man of the Year.

Operating profit in the fourth quarter of 2020 Excluding the standard IFRS 16 and excluding revaluation, it amounted to approximately NIS 90.5 million, and constitutes approximately 11.4% of sales. Compared with operating profit excluding IFRS 16 and neutralizing the revaluation in the amount of NIS 101.3 million, which constitutes approximately 11.7% of sales in the corresponding period last year, a decrease of approximately NIS 10.8 million, a decrease of approximately 10.6%.

In the fourth quarter, one-time revaluation gains of NIS 128 million were recorded as a result of its acquisition of control of Lalin, while financing expenses were recorded in respect of the revaluation of an option by Leumi Partners to purchase approximately 10% of Retailers’ shares.

Harel Wiesel: “The year 2020 has demonstrated the Fox Group’s business resilience and managerial capabilities in a challenging time given the consequences of the Corona plague. The results we present today, despite being closed for over 130 days, are based on proper strategic and operational deployment over the years, high business focus and commitment adjustments. Fox’s growth strategy focuses on three main pillars: preserving and developing operations in the country, with an emphasis on the core of fashion and home and basic consumer products for each family, developing the group’s business abroad including through the subsidiary’s sports activities, retailers, and further exploration and realization of new business opportunities. On the diversity of the group’s portfolio and the promotion of innovation in the group’s business. Looking ahead to 2021, the Fox Group is optimally prepared for continued growth and enjoys financial strength that will allow it to continue to leverage its growth engines, including the development of retailers in Europe and Canada with the planned opening of additional Nike and Pot-Locker stores, as well as online terminal X which It gained momentum in 2020 and is expected to continue to grow in the coming years, among other things, thanks to a very significant variety of over 80 different international brands. “