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S&V Weekly Newsletter Vol.8 No.50, December 12 2022

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Please note: Click on any ad to go to the advertiser’s website

 

December trading - a slow start

Durban, KZN, SA  – December trading so far "has been on the downside" by comparison with last year, said Ashika Dhanampal of men's boutique Fellows Boutique in the CBD. She said Black Friday had also been a disappointment. "We were expecting fireworks, but it was just like a normal Friday," she said.


Dave Vallabh, Bilimoria Fishing Tackle
East London, E. Cape, SA - Slow start - probably slower than last year! But it is still early days - should get better!


Afzel Tajbhai, Pakistan Trading Company
Lobatse, Botswana - Trading has generally been tough since May this year. December has been no different, yes trade is better than other months but the trend is the same in comparison with previous years, 30+ % down.
        Botswana is over-traded with branded merchandise and I don’t see how money can be made on them for much longer.
        Fingers crossed that things will improve.


Khalid Anwary, Anwary's
Butha-Buthe, Lesotho - Been very quiet. Had a good Black Friday.


Port Elizabeth, E. Cape, SA – December trading so far is "not good at all", said Umesh Mitha, member of men's branded lifestyle retailer Bad Street Boyz, which has 4 stores.       "Black Friday was very good," he said, "but I don't think it has impacted on December. The problem is disposable income - or the lack of it. People want the product, there's no shortage of customers, but after they've bought food, there's not enough left, even for lay-byes. I used to ask for 10% up front for lay-byes - now I'll take R50 because at least I know they'll be back."
      He said the problem lay with government's handling of the economy and infrastructure. "Load shedding costs me a fortune, but to install generators for my stores would cost about R1 million - with business as it is, how do I justify that, even if the banks will lend me that? They want R3 million in assets to lend you R1 million.
      "This is a wonderful country, and I've been to lots of others, but it's being messed up, and friends in other industries tell me they are having exactly the same problems."

 

 

 

VF Corporation CEO retires as forecast revised down

Apparel group VF Corporation last week announced the retirement of chairman, president and CEO Steve Rendle - a move which FN Daily headlined: 'VF Corp. Is the Latest Major Footwear & Apparel Firm to Lose a CEO Amid a Turbulent Time for the Industry.' VF's announcement included a revised financial outlook for its 2023 financial year "to reflect the impact of weaker than anticipated consumer demand". Below are extracts.
Denver, USA (05 December 2022) – VF Corporation today announced that Benno Dorer, Lead Independent Director of the VF Board of Directors, has been named Interim President and Chief Executive Officer, effective immediately. Richard Carucci, a director on the Board since 2009, will serve as Interim Chairman of the Board.
      Dorer’s appointment follows Steve Rendle’s decision to retire from his position as Chairman, President and Chief Executive Officer. The company has commenced a search for a permanent Chief Executive Officer and has retained a leading executive search firm to support its evaluation of internal and external candidates.

FY23 Financial Outlook
VF is revising its FY23 outlook largely to reflect the impact of weaker than anticipated consumer demand across its categories, primarily in North America, which is resulting in a more elevated than expected promotional environment as well as order cancellations in the wholesale channel to manage trade inventories. Also impacting the outlook, but to a lesser degree, are the higher than expected impacts from inflation on consumer discretionary spending in Europe and ongoing COVID-19 related disruption in China.
      VF now expects total revenue growth in the second half of FY23 to be modestly lower than previously outlined, with revenue for the full year expected to increase 3% to 4% in constant dollars (excluding the impact of translating foreign currencies into U.S. dollars), compared to the previous guidance of up 5% to 6% in constant dollars. The promotional environment, primarily in North America, and SG&A deleverage from lower volumes are expected to impact profitability in the near term. Adjusted diluted EPS for the full year is now expected to be $2.00 to $2.20, versus $3.18 in the prior year and compared to the previous outlook of $2.40 to $2.50. Adjusted amounts exclude transaction and deal related activities, costs related to specified strategic business decisions, noncash impairment charges, and a pension settlement charge.
      VF remains committed to its FY27 long-term targets and capital allocation priorities, as outlined during its recent Investor Day on September 28, 2022, and is focused on executing against its strategy in order to drive strong long-term shareholder value and on improving near-term performance.

 

 

Profits down, sales up for boot maker Dr Martens

Tinashe Mandirahwe, former owner of Cathula Sandals in Harare, Zimbabwe, was part of the brain drain from that country, and now describes himself as a 'Canadian Businessman and Retail Analyst'. He retains an interest in footwear, and sends S&V an occasional article on some aspect of the footwear business. Here he writes about Doc Martens' results.
With Christmas approaching, UK-based footwear brand Dr Martens has announced that its profits for the 6 months to September 2022 were lower than expected. This announcement sent holders of Dr Martens shares into a not-so-comfortable position as their shares went down some 20% as of November 22, 2022. Increases in leather prices amongst other operating costs contributed to the 5% decrease in profits for this period.
      Dr Martens, also known as Doc Martens, Docs or DMs, uses oil-based soles so the rising oil price has had a negative effect on the company's bottom line. The weakness of the pound has also put pressure on its margins. Other factors that contributed to the decline in profits included investment in marketing and new store openings.
      There were also supply chain disruptions caused by a worker strike at UK's busiest container port -  Port of Felixstowe.
        Interestingly, despite the drop in profits, the company saw a 13% rise in sales to £419 million.
      Moving forward, the company says it will continue to put money into the business. It plans to increase prices of its top seller; the 1460 classic boot, by 6% (it currently sells for about £159).
      Dr Martens shoes remain popular, especially in the UK.  In its 2021 annual report, the company stated that Dr. Martens sold 31 pairs per 1,000 population in the UK. In China they sold less than one pair per 1,000 population. Dr Martens sees this as an opportunity to make inroads into China and other markets for growth.
      The report also states that consumers who own a pair of  Dr. Martens wear them at least once a week, making them a practical everyday shoe.
      Headquartered in Wellingborough district of Northamptonshire, Dr. Martens was founded in 1947 in Seeshaupt, Germany. Today only about 1% of Dr Martens are made in the UK, the rest are made in Asia.

 

Death notice

Durban, KZN, SA – Dave Buckingham, founder, with his wife Barbara, of Royal Adhesives, died on 04 December, aged 75. An obituary will follow in the January issue of S&V Footwear and Leather Goods.

 

In case you missed it!

The latest issue of S&V Protect Magazine

S&V PROTECT MAGAZINE VOL16 NO4 FOURTH QUARTER 2022
IN THIS ISSUE:

03 Upfront
- NRCS appoints firm to evaluate effectiveness and funding model.

03 Radon
- Research measurement data indicates that there can be unexpectedly high levels of radon, regardless of floor level, according to a report by Radonova Laboratory.
- Fact sheet and position statement on radon as a cause of lung cancer: A paper by the Cancer Association of SA (CANSA).

10 Health
- Sugar: The Health Promotion Levy, limiting sugar in drinks, is working, says an article in the SA Medical Journal.
- Sugar: The Health Promotion Levy is hurting an industry already on its knees, says the SA Sugar Association.

11 Competition Tribunal
- No decision yet in automatic fire sprinklers cartel allegation.

12 Asset Maintenance
- New ASTM International group to develop standards for adult sexual products.

13 Consumer Protection
- You need to find your trusted advistor, writes Suren Naidoo, Field Services VP Anglophone at Schneider Electric.

14 Innovation - The Fraunhofer-Gesellschaft
- Cost-effective alternative to a PCR test.
- Reduced risk after cardiac surgery thanks to resorbable pacing leads.

16 Fairs & Events
- A+A under new management: Lars Wismer to become new director.
- Themes for A+A 2023: Sustainability, digital performance, future solutions, new work, hygiene and pandemic.

17 Substance Abuse
- Alcohol and drug testing the workplace: Some do's and don'ts for employers.

18 Buyers' Guide
- What's on offer.

Advertisers in this Issue
BBF Safety Group / Your workplace safety partner (OFC), Factory to rent Cape Town (08), Hi-Tec Interceptor (02), Palm Footwear/Terrapod (03), Rebel SafetyGear/Urban Retro Vellie (06), S&V Directory (13), SAFLEC (11), Selective International Footwear Kaliber/Security Footwear (10).

 

 

They Said It

"I help out at the ratepayers' association and the DA office and I try to stay out of Johnny's hair." - Louise Pelser, former SAFLEC staff member now retired to Philippolis, Free State, SA. She is also a wonderfully entertaining correspondent who is still passionate about the local footwear manufacturing industry.

 

Directory entries updated last week

BBF Safety Group, Pinetown, KZN, SA.
Izintaba Crocodile Farm, Pretoria, Gauteng, SA.

 

New subscribers last week

Jayne, Manager, Soft Wear (Pty) Ltd, Johannesburg, South Africa

 

Trade fairs updated last week

26-28 September 2023: allfashion Sourcing, Cape Town, W. Cape, SA.

 

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

 

12/12/1937: M Kadwa, Umzinto Wholesalers, Umzinto, KZN, SA.
12/12/1949: Johan Barnard, Envirotan, Port Elizabeth, E. Cape, SA.
12/12/1956: Chandrakant Dajee, Avalon Job Buyers, Port Elizabeth, E. Cape, SA.
12/12/1970: Kobus Louw, Morgan Beef/Brits Leathers, Pretoria, Gauteng, SA.
12/12/1979: Dane Patterson, Boardriders, Durban, KZN, SA.
12/12/1980: Craig Lahee, Ritewear Footwear, Cape Town, W. Cape, SA.
13/12/1959: Kersie Govender, CK Shoes, Pietermaritzburg, KZN, SA.
13/12/1960: Ebrahim Sonpra, Sonpra’s Warehouse, Pietersburg/Polokwane, Limpopo, SA.
14/12/1953: Rachmat Thomas, retired, formerly Chic Shoe Manufacturers [closed], Cape Town, W. Cape, SA.
14/12/1957: Paul Henshaw, Puma, Cape Town, W. Cape, SA.
14/12/1988: Lu Fraser, Claw Boot International, Johannesburg, Gauteng, SA.
15/12/1973: Charl Lucas, Springbok Skoeisel, Springbok, N. Cape, SA.
15/12/1975: Sabrina van Rooyen, Van Hobs Dry Cleaners, Pretoria, Gauteng, SA.
15/12/1983: David Fox, Good Hope Sales, Cape Town, W. Cape, SA.
16/12/1939: Danny Pincus, agent, Johannesburg, Gauteng, SA.
17/12/1972: Iqbal Abdulla, Studio 88, Johannesburg, Gauteng, SA.
18/12/1978: Hassive Magaña Maya, Spanish Commercial Office, Johannesburg, Gauteng, SA.

 

14/12/2016: Allan Capell, (b. 01/07/1932), Capelli [closed], Durban, KZN, SA.
14/12/2016: Raman Merchant (b. 02/06/1929), Merchant’s Outfitters, Port Elizabeth, E. Cape, SA.
16/12/2021: Chris Bezuidenhout (b. 11 December 1951), The Cross Trainer, Johannesburg, Gauteng, SA.
18/12/2003: Ben Stoltzman (b. 03.05/1933), Vogue Shoes/Sportshoe SA [closed], Cape Town, W. Cape, 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.

 

 

 

 

Exchange rates

Note: For previous rates, see HERE

1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ CNY ¥
10/12/2022 R18.28 R21.27 R17.35 R2.49
 


2. Botswana Pula (BWP)

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

 
  Euro € GBP £ US $ CNY ¥
10/12/2022 13.57 15.80 12.88 1.85


3. Malawian Kwacha (MWK)

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

 
  Euro € GBP £ US $ CNY ¥
10/12/2022 1081.85 1259.16 1027.05 147.61


4. Zambian Kwacha (ZMW)

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

 
  Euro € GBP £ US $ CNY ¥
10/12/2022 18.15 21.12 17.23 2.47



5. Zimbabwean Dollar (ZWL$)

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

 
  Euro € GBP £ CNY ¥ Official US$
10/12/2022 381.21 443.68 52.01 662.79
 

Note: For previous rates, see HERE

 

 

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (08 December 2022) - The current average hide price decreased by 1.1% to R4.18/kg from R4.23/kg a week ago. The current price is 9.8% lower than the average price a month ago and 19.6% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R4.00 Maximum price: R5.00. 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:
Izintaba Crocodile Farm, Pretoria, Gauteng. Crocodilian breeding.
J. Gerdes Uniwear, Windhoek, Namibia. PPE reseller.

 


Classified Adverts




Agencies sought

Professional and very experienced agent, with extensive chain and retail customer list, seeks agencies for the Western Cape. - Skip Bradfield (0)82 477 7312, skipbradfield@gmail.com

 




Sewing Machine Mechanic/Technician seeks position

PREMCHAND HARIPERSAD. I have 34 years combined experience as a machinist/mechanic. Currently a qualified sewing machine mechanic. My qualification was obtained at ‘London City of Guilds institute’. During my tenure in the industry I have serviced and fixed high quality machinery that production depended on. Passion and skill for the industry assisted me in obtaining world class experience which I thoroughly enjoy not just as a job but more as my hobby. This allows me to exceed expectations of technical demands and standards ensuring maximum production at all times. Based in Durban CV available +27 78 151 7752 +27 67 047 3952 haripersadpremchand@gmail.com

 




 

Contact us

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

Next newsletter: December 19, 2022.

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

Our website www.svmag.co.za

 

 

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