Fashion company Castro is releasing its results for the third quarter of 2020 and the first nine months of the year, in which it suffered severe damage due to the corona crisis and the closure of malls, which was offset by the improvement in its online trading activity.
Ron Rotter, CEO of the Castro-Hoodies Group: “The Castro Hoodies Group (Castro, Hoodies, Carolina Lemke, Urbanica, Toften, Yves Rocher and Kiko Milano) presents an excellent report for the third quarter of 2020, despite the closure of stores during September, In light of the corona crisis.
The horizontal streamlining process that the group has been implementing in the past year is yielding positive results and enables the group to cope well with the corona crisis while maintaining and establishing the stable and solid financial position of the group.
“We are showing a significant improvement in all segments of the Group’s operations this quarter, compared to the same period last year. In recent months, we have launched renewed ecommerce sites for Castro, Hoodies, Urbanica and Yves Rocher brands, which increased sales by hundreds of percent. The group and the further development of the group.
“Even during this period, as part of the streamlining measures we carried out, the group’s controlling owners reduced their wages and their rent payments to a total of NIS 4.5 million. Also during this period we continue to streamline the store deployment, and continue with the opening of new stores. In November 2020 we opened “A new store of the Italian makeup brand Kiko Milano in the center of Big Nazareth. We are working hard to open more stores of the group’s brands, and we will continue to develop the group’s business.”
The Group’s revenues in the third quarter amounted to NIS 353,413 million, compared with NIS 427,981 million in the corresponding period last year. The net profit for the quarter reached NIS 41,271 million against a loss of NIS 31.801 million in the corresponding quarter.
Despite the Corona crisis and the closure of shopping centers in September and in light of the success of the group’s ecommerce sites, the company shows an operating profit of NIS 68 million in the third quarter of 2020 and a cumulative NIS 43 million in 2020.
As of September 30, 2020, the Company’s cash balances and cash value amounted to approximately NIS 320 million. The Group has positive working capital in the amount of approximately NIS 332 million.