S&V Weekly Newsletter Vol.8 No.04, January 24 2022

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Fairs & Events

You'll have to choose - Lineapelle or Micam/Mipel - after organisers announce a 3-week gap

Milan, Italy – On Wednesday last week, footwear fair Micam, leather goods fair Mipel, and haut-à-porter show The One Milano, announced they had changed dates from 20-22 February to 13-15 March 2022. They said the new dates would partially overlap with the fashion jewellery and accessories fair Homi Fashion & Jewels, on 11-14 March. All fairs will be at the Fiera Milano Rho exhibition centre.
      The next day, the leather and components fair Lineapelle announced that it was NOT changing its dates, which remain 22-24 February, also at Fiera Milano Rho.
      Both sets of organisers have given reasons for their decisions, but they don't address the effect for visitors, especially for those from outside Europe.
      Said Declan Kelly of crocodile skin trader 4Seeable Trading, Johannesburg, Gauteng, SA: "This is interesting. Going to interfere with travel plans. Which dates does one choose when the hope was to see all at one time?"
      The Micam/Mipel/The One Milano organisers said "this new schedule, requested by the market and by industry operators, aims primarily at creating a platform that brings together the entire fashion system and offering the international audience of professional visitors a single, great business opportunity at a time of greater serenity".
      Lineapelle explained its decision not to change dates: “Due to the peculiarity of their exhibits (leathers, materials, accessories, components), Lineapelle thinks that a postponement would not allow the production chain to respect the correct dynamics of creative development and production of collections and that the current schedule is the only one meeting this requirement”.
      Lineapelle also referred to pandemic regulations: "Besides, the community of Lineapelle buyers and visitors is composed by the middle-high segment of the fashion industry, which has operational and commercial offices in Italy and in Europe, and whose participation in the event is not prevented by the current management of the pandemic.  In addition, we are also asking with extreme urgency the authorities in charge to solve the problem of access of foreign operators who have been given vaccines not recognized by EMA (European Medicines Agency)."

The sneakers debate

'It's not rocket science'

By Brian Zyster, Tanielz Leather Products
Cape Town, W. Cape, SA – I agree with Mr Vymetal regarding the industry being able to hold their own with regards to the casual/trainer footwear production capabilities. Producing those products is not rocket science.  Many thousands of pairs were produced locally before until the borders opened and the ability to get bigger margins from the east made it profitable to import.
        I believe that the pandemic created an opportunity for the country to claim back the loss. All we need is for the local retailers to buy local again. That's the biggest problem we currently have and not the ability to manufacture.
  

Stock Exchange News Services (SENS)

Truworths - business update and trading statements

Sales up 2% for 6 months to December
Cape Town, W. Cape, SA (21 January 2022) – Truworths International Ltd. announces that both of its main markets, South Africa and the UK, continue to be impacted by the COVID-19 pandemic. Despite these macro challenges, Group retail sales for the 26-week period ended 26 December 2021 increased by 2.0% to R9.9 billion.
        Amidst the ongoing challenging trading conditions, the Group estimates that its headline earnings per share for the current period will increase by between 29% and 34% to between 438 cents and 455 cents relative to the prior period HEPS of 339.3 cents. The Group further estimates that its earnings per share for the current period will increase by between 43% and 48% to between 443 cents and 458 cents relative to the prior period EPS of 309.5 cents. For information the Group reported HEPS and EPS for the pre COVID-19 26 week period ended 29 December 2019 of 364.9 and 364.7 cents respectively.
        Shareholders are advised that this business update and trading statement does not constitute an earnings forecast, that the financial information provided herein is the responsibility of the directors, and that such information has neither been reviewed nor reported on by the Group’s external auditors. The Group’s interim results for the current period are scheduled for release on or about Thursday, 17 February 2022.
 

TFG - Q3 trading update

Sales up 17.3% for 3 months to December
Cape Town, W. Cape, SA (21 January 2022) – Strong performance in Q3 FY2022 with Group retail turnover growth of 17,3% compared to Q3 FY2021, with significant growth over the important Black Friday period (growth of 19,3% in November 2021 compared to November 2020) and over the festive period (growth of 19,8% in December 2021 compared to December 2020);
*TFG Africa delivered strong retail turnover growth of 17,3% in Q3 2022 compared to Q3 FY2021 (with growth of 13,9% in November 2021 compared to November 2020, and with December 2021 pleasingly exceeding expectation with growth of 23,0% compared to December 2020);
*Cash retail turnover growth for TFG Africa of 16,6% for Q3 FY2022 compared to Q3 FY2021 and 41,6% for the nine months to December 2021. Cash retail turnover now contributes approximately 70,8% to total TFG Africa retail turnover for the nine months to December 2021;
*TFG London’s performance continued to improve in Q3 FY2022 with retail turnover growth of 25,5% (GBP) compared to Q3 FY2021;
*TFG Australia’s retail turnover growth of 16,9% (AUD) in Q3 FY2022, compared to Q3 FY2021 (and against a Q2 FY2022 decline in retail turnover of 16.6% due to severe lockdown measures), showed a strong trade rebound as lockdown restrictions were eased in most states by November;
*Group online retail turnover growth of 17,8% for the nine months to December 2021 off a very high base in the comparable prior period; and
*Continued investment in growth through organic investments (including a further 127 store openings in TFG Africa in Q3 FY2022, an increase in manufacturing capacity and strategic IT projects); and through acquisitions as previously announced.

Outlook Although the trading environment across all three our main territories is expected to remain challenging, we are encouraged by the trading performance in Q3 FY2022. This level of performance has continued in the first few weeks of January 2022 and has led, amongst other key categories, to record retail turnover in the kidswear and school clothing categories for TFG Africa, largely due to Jet’s first meaningful contribution to these categories.

Mr Price - trading update

Sales up 19.2% for 3 months to December
Durban, KZN, SA (21 January 2022) – During the third quarter from 3 October 2021 to 1 January 2022 of the financial year ending 2 April 2022 (FY2022), the group recorded growth in retail sales and other income (“RSOI”) of 19.2% to R9.3bn. This included the recently acquired Power Fashion and Yuppiechef businesses, excluding which RSOI grew 7.2% to R8.3bn.
     South African retail sales grew 5.8% (comparable stores 4.0%) to R7.4bn. Store sales increased 6.0% as consumers became more comfortable in the physical retail setting again. This was most evidenced in the group’s larger format stores located in the super regional and regional shopping centres which performed strongly. Non-South African corporate-owned stores sales grew 0.4% to R554m.

Outlook The short-term improvements in the trading environment are encouraging. However, the group anticipates further uncertainty for the foreseeable future. Rising input costs and exchange rates are expected to lead to higher merchandise inflation in the new financial year. Focus remains on strong merchandise execution to continue growing the core business and ensuring its investments into growth deliver to expectations.

Woolworths - trading update

Sales down 2.1% for 6 months to December
Cape Town, W. Cape, SA (20 January 2022) – Group turnover and concession sales for the 26 weeks ended 26 December 2021 decreased by 2.1%, compared to the 26 weeks ended 27 December 2020 and by 0.3% in constant currency terms. Online sales grew by 22.4%, contributing 13.7% to the Group’s total turnover and concession sales for the period. Sales in the last six weeks of the period increased by 3.0%, and by 3.5% in constant currency terms.
     Shareholders and noteholders are referred to the announcement released on the Stock Exchange News Service on 17 November 2021 and are advised that earnings per share, headline EPS and adjusted diluted HEPS for the current period are expected to be within the ranges reflected in the table below, with adHEPS no longer expected to decline by more than 20% relative to the prior period.

December 2021 expected range (%)
*EPS: -35.0% to -45.0%
*HEPS: -30.0% to -40.0%
*Adjusted diluted HEPS: -30.0% to -40.0%

December 2021 expected range (cents)
*EPS: 158.8 to 187.7
*HEPS: 156.7 to 182.8
*Adjusted diluted HEPS: 155.0 to 174.3

Richemont - third quarter sales growth

Sales up 32% for 3 months to December
Geneva, Switzerland (19 January 2022) – Richemont announced further sales growth acceleration In the third quarter ended 31 December 2021.
Highlights
Compared to the third quarter ended 31 December 2020:
*Strong sales, up by 32% at constant exchange rates and by 35% at actual exchange rates
*Double-digit sales growth across all regions, channels and business areas
*Strongest performance from the Americas and Europe, rebalancing regional sales mix
*Retail and online retail, a combined 78% of Group sales, driving growth
*Excellent performance from all three business areas:
- Jewellery Maisons, with sales growth of 38% at constant exchange rates (+41% at actual exchange rates)
- Fashion & Accessories Maisons, with sales growth of 37% at constant exchange rates (+40% at actual exchange rates), sustained by Chloé, Montblanc and Peter Millar
- Specialist Watchmakers, with sales growth of 25% at constant exchange rates (+29% at actual exchange rates)
Compared to the third quarter ended 31 December 2019:
*Continued sequential quarterly growth acceleration, with third quarter sales up by 38% at constant exchange rates and 36% at actual exchange rates
*Pre-pandemic levels substantially exceeded, with sales up double digits across all regions and business areas, as well as online and offline retail channels
*Outstanding performance of the Americas, Asia Pacific and Middle East and Africa; Europe and Japan resuming growth, up double digits
*Performance led by the Jewellery Maisons (+57% and +55% at constant and actual rates respectively) with other business areas growing at or close to 20%
The Group's results for the financial year ending 31 March 2022 will be announced on Friday, 20 May 2022. The Group's corporate calendar is available here.

Death notice

Cape Town, W. Cape, SA – Geert Schuiling, who was part of the team at leather wholesaler Woodheads, has died. We hope to carry an obituary in the February edition of S&V Footwear & Leather Goods.

They Said It

"I have relocated back home to Cape Town. I have clients refusing to allow me to retire. I am still servicing clients all over the country but on a much lower base. I still do lots of consulting work as well. Specifically product development. Should the weather play along I can just put in some leave and spend the day at the beach. So you can say, semi retirement." - Brian Zyster, Tanielz Leather Products, Cape Town, W. Cape, SA. He spent many years in Pretoria, trading as JoJoIVU.

"I've just been informed that they have moved the fish skin course to 14 - 25 Feb...Unfortunately, I will be sipping cocktails the first week, so might only join the week after." - Quintin Marais, Rolfes Leathers, Boksburg, Gauteng, SA, on the tight schedule and other hardships facing tanning chemicals executives.

In case you missed it!

The January issue of S&V Footwear & Leather Goods Magazine

CLICK HERE TO VIEW IT ONLINE

S&V FOOTWEAR & LEATHER GOODS MAGAZINE VOL88 NO1 JANUARY 2022

IN THIS ISSUE:

03 Focus Sector
- Sneakers: If local manufacturing is to grow, it must find a way of getting into this market.

05 The U.S. Market
- Top 5 retail trends to watch in the new year.

06 Sector Reports
- Safety footwear - BBF: Championing local manufacturing in workplace safety solutions.

10 Components
- Logomotif: Branding made visible.

11 Logistics
- The Fraunhofer-Gesellschaft is developing IT solutions to counter supply bottlenecks.

12 Sustainability
- Huntsman and Shincell create fully recyclable TPU foam for footwear.

13 Italy
- Recovery led by branded exports.

13 Fairs & Events
- Première Vision appoints fashion director.

14 Notice Board
- Nigel Plumpton obituary: The best times in life were around the campfire.
- Chris Bezuidenhout obituary: The Cross Trainer mourns the loss of its GM.
- Ron MacNiven obituary: A corporate man with a rebellious sense of humour.



Advertisers in this Issue
BBF Safety Group (OFC), Caterpillar / Medicus Footwear (05), Freestyle Genuine Handcrafted Leather (02), Italtan (below), S&V Calendar (10), S&V Diretory (11), SA Footwear & Leather Export Council (07), Saddler Belts (06), Soft Wear (04).

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za

24/01/1937: Dan Naidoo, Togo Shoes, Pietermaritzburg, KZN, SA.
24/01/1969: Yolander Lotter, Comfy Feet Shoes, Jeffrey’s Bay, E. Cape, SA.
25/01/1951: André Pelser, retired, formerly Mossop-Western Leathers, Wellington, W. Cape, SA.
25/01/1973: Reggi Xaba, Zetu Shoes, Durban, KZN, SA.
26/01/1958: André Compion, PMC, Pinetown, KZN, SA.
26/01/1962: PT Harrower, C&B Harrower Agencies, Johannesburg, Gauteng, SA.
26/01/1973: Lou Harvey, Lou Harvey Company, Durban, KZN, SA.
26/01/1982: Adeeb Moosa, Deebo Sales, Cape Town, W. Cape, SA.
26/01/19??: Jeetesh Ambaram, JFK Trading, Durban, KZN, SA.
27/01/1969: Ashraf Saley, Nizam’s Enterprises, Azaadville, Gauteng, SA.
27/01/1985: Mpumi Mazibuko, Leather Zulu, Randburg, Gauteng, SA.
28/01/1944: Martina van Jaarsveld, Martina Shoe Boutique, Brandhof, Free State, SA.
29/01/1973: Nelesh Gulab, Shawney’s Shoes/Walk Tall, Johannesburg, Gauteng, SA.
29/01/1983: Zubairr Sadak, Shoe Talk, Durban, KZN, SA.
30/01/1948: Pravin Mistry, Super Star Fashions, Vereeniging, Gauteng, SA.

In Memoriam this week

25/01/2014: Barry Kruger (b. 20/06/1944), Richleigh Shoes [closed] and Corrida Shoes, Pietermaritzburg, KZN, SA.
26/01/2006: Victor Ronald (Vic) Van Der Weele (b. 21/10/1916), SA Mercantile [closed], Cape Town, W. Cape, SA.
27/01/2008: Jacob Anagnostakis (b. 03/04/1929), Watson Shoes, Great Brak River, W. Cape, SA.
28/01/2004: David Aaron (b. 12/03/1939), Natal Shoe Components/Natalie Footwear [closed], Durban, KZN, SA.
28/01/1997: Peter O'Brien, Buckman Laboratories, Hammarsdale, KZN, SA.
29/01/1998: Peter Buglass, NPI, Durban, KZN, SA.
30/01/2021: Manie Booysen, former MD of Seton SA, Nigel, Gauteng, SA.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

3. Malawian Kwacha (MWK)

Source: https://www.xe.com/currencyconverter/

4. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

5. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (20 January 2022) - The current average hide price decreased by 1.3% to R5.60/kg from R5.70kg a week ago. The current price is 2.3% higher than the average price a month ago and is 35.3% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R5.00 Maximum price: R5.80. Please note: Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, Absa group.

Note: For previous prices, see HERE

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Gatta's Trading Store, Pretoria, Gauteng, SA. Work wear and army surplus retailer.
Gauteng Uniform Suppliers, Johannesburg, Gauteng, SA. Work wear, security and PPE retailer.

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: January 31, 2022.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Our website www.svmag.co.za