S&V Weekly Newsletter Vol.9 No.06, February 6 2023

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Despite challenges, cautious optimism for summer

We asked 20 manufacturers and importers of footwear, handbags and belts what their order positions for autumn/winter were like, and how spring/summer sales were shaping up.
Morné Howell, Afro-Thai Imports
Trafalgar, KZN, SA - With the exception of one factory, all our winter stock is en route, or is here already. We have had to work hard to minimise the impact of CNY on deliveries and apart from COVID-related issues in certain areas, we are satisfied with how things have panned out.
      With regards to summer - we expect more inflationary pressure to bleed through to the market, with the US talking about further interest rate hikes, Rand weakness and ultimately pressure on end users. Core lines continue to do well and our focus continues to be around comfort, rather than fashion. At this stage we are holding on tight, but still enjoying the ride, although the road is a little dark (tx Eskom) and bumpy at times.

Adrian Maree, Corrida Shoes
Pietermaritzburg, KZN, SA - Corrida’s start to the year has been better than 2022, and although it’s very early days for us for Summer, it looks like it will be very similar to last year which will be a very positive result.
 
Nas Kokoroyanis, Florsheim SA
Johannesburg, Gauteng, SA - It has been a hectic return to business in the New Year. Lots of queries, issues etc.
      We are fortunate that we traded well at retail, wholesale and online last year. This has put us in a good position for 2023. We have a 'new' brand, Nunn Bush by Florsheim, which has given us entrée into a new segment. This worked very well for us in 2022, and we foresee most of our forecasted growth coming from this brand.
      I believe the market to be very volatile with too many factors at play i.e. rising interest rates, load shedding, unemployment, etc. But, in saying that, every opportunity has to be grasped.

Fiona Borthwick, FSP Collection
Cape Town, W. Cape, SA - Pleased to report that we have had a good run for summer with tourists pouring into South Africa, especially Cape Town.       We are expecting good sales for February and March 2023 with events like the Formula E happening. The build up around the stadium is very exciting and will draw big crowds.
      There is always a dip during the winter months but we keep ourselves busy manufacturing stock.
      We are up by almost 100% on this summer period versus last year but still a long way from pre-Covid figures.

Mike Farrer, Hi-Tec Sports Distributors
Cape Town, W. Cape, SA - Trade for aw2023 is 15% up on last year and SS23 at this early stage, with a bit to do still, is flatlined. In the coming months we expect to grow slightly on SS22.
This is on the back of 25% average growth over the past 3 years.
We have had a good uptake in new markets in Africa which will fuel some future growth.
So we are extremely happy under difficult trading conditions of late.

Paul Hancock, Intobrands
Cape Town, W. Cape, SA - FOB $ prices have increased by approximately 15% across all of our brands which, together with another 15% exchange rate deterioration, will put a lot of pressure on both RRPs and margins as we cannot pass the full price increase onto the consumers. We have consequently ordered lower volumes for the coming winter season.
      Summer sales have performed well and we are sold out in many key styles. We have recently landed some replacement stock but at higher prices which may impact on demand.

Michelle van Emmenes, Paris Belts
Johannesburg, Gauteng, SA - The bulk of AW23 has been completed and ready for markets and we are now working on SS23.  Sales have been good end last year and we just launched our 2023 range, adding some exciting new designs, and interim orders are looking positive.

Andrew Fenwick, Saddler Belts
Durban, KZN, SA - Our order book is about the same as last year. We thank those retailers who continue to support local manufacturers.

UGG and HOKA lead Deckers Brands results

Goleta, Calif., Feb. 2, 2023 /PRNewswire/ - Deckers Brands, which owns UGG (represented in SA by IntoBrands), HOKA (represented in SA by Ikhambi Distribution), Teva and Sanuk, today announced financial results for the third quarter ended December 31, 2022. The Company also provided an update to its financial outlook for the full fiscal year ending March 31, 2023.
      "Our brands delivered another stellar quarter, led by record results for both HOKA as well as our consolidated direct-to-consumer business," said Dave Powers, President and Chief Executive Officer. "The consistent strength of Deckers results thus far in fiscal year 2023, despite macroeconomic and currency headwinds, are the result of our brand marketplace management actions and dedication to long-term strategic priorities. We believe UGG and HOKA are two of the healthiest, well positioned brands in their respective markets, and with the strength of our operating model, Deckers is poised for continued success going forward."
      Third Quarter Fiscal 2023 Financial Review (Compared to the Same Period Last Year)
- Net sales increased 13.3% to $1.346 billion compared to $1.188 billion. On a constant currency basis, net sales increased 17.5%.
- Wholesale net sales increased 8.0% to $646.3 million compared to $598.4 million.
- Direct-to-Consumer (DTC) net sales increased 18.7% to $699.3 million compared to $589.4 million. Comparable DTC net sales increased 22.1%.
- Domestic net sales increased 13.9% to $906.8 million compared to $796.1 million.
- International net sales increased 12.1% to $438.8 million compared to $391.6 million.

Skechers expects Chinese market to bounce back

Los Angeles Feb. 2, 2023 /PRNewswire/ - Skechers U.S.A., Inc., represented in SA by Brand Folio, announced financial results for the fourth quarter and year ended December 31, 2022.
Fourth Quarter Highlights
Record quarterly sales of $1.88 billion, a year-over-year increase of 13.5%
Wholesale sales grew 15.7%
Direct-to-Consumer sales grew 10.8%
Diluted earnings per share of $0.48
“2022 was another milestone year for Skechers as we achieved record annual sales of $7.4 billion. This increase of $1.1 billion, or 18%, from the prior year was the result of four quarterly sales records, including fourth quarter sales of $1.88 billion,” began David Weinberg, Chief Operating Officer of Skechers.
      “Fourth quarter growth was driven by increases of 16% in Wholesale combined with 11% in Direct-to-Consumer. Wholesale results were driven by double-digit growth in the U.S., international distributors, Germany, India, Mexico, and Spain.
      "The strength in our Direct-to-Consumer business was primarily driven by domestic sales.
      "The growth within the quarter was partially offset by a 23% decrease in our China sales, which were impacted by COVID-related restrictions, including the temporary closure of more than 1,000 Skechers stores in November. With the recent elimination of the zero-COVID policy, we believe that our business in China will improve throughout 2023.
      "In addition, while the inventory challenges at our domestic distribution center have been difficult to navigate, we are seeing improvements and remain confident in the strength of our brand and the demand for our products. We ended the year strong and expect to see continued growth in 2023.”

APLF in Dubai: 'Over 80%' of last year's visitors expected again next month

Hong Kong - For the second year, APLF is being held in Dubai (13-15 March), and the organisers say statistics from APLF 2022 show that 76% participants found APLF "tremendously useful" to their business, and 84% of participants said that they will re-visit APLF Dubai this year in 2023.
         The Dubai edition includes the 3 fairs which are normally held in Hong Kong:
      APLF Leather: Hides/skins, wet blue, crust, exotic skins, leather, materials, machines, tools, dyes and chemicals for tanning, footwear, leather goods, accessories, garments industries.
      Materials+: Sustainable, functional, woven and natural materials, components. hardware, accessories, machineries, tools and supplies for footwear, fashion industries.
        Fashion Access: A wide collection of fashion goods, including bags, fashion accessories, footwear, garments, small leather goods and travelware.
 

They Said It

"I saw my cardiologist today, and he didn't say anything which made me unhappy or happy, but he did tell me to make another booking for January, so clearly he has faith I'll last that long." - Jax Snyman, The Sweat Shop, Johannesburg, Gauteng, SA. And hopefully many, many more Januaries after that.

Retiring, not yet

Durban, KZN, SA - Agent Mike Samuel is retiring from Skechers at the end of June after 30 years with the brand, and will be representing Hey Dude, a brand of Crocs SA.

Directory entries updated last week

ACA Thread, Cape Town, W. Cape, SA.
Bader SA (Pty) Ltd [subsidiary of Bader GmbH & Co].
Cheryl's, Springs, Gauteng, SA.
Glamour Shoes [Billy Goott Agencies (Pty) Ltd], Johannesburg, Gauteng, SA.
Myganox (Pty) Ltd, Pietermaritzburg, KZN, SA.

New subscribers last week

Martin Mpemi, General Manager, Jaguar Shoes (Pty) Ltd, Maputsoe, Lesotho.
Adéle, Leather goods sales, Mabulel, Centurion, Gauteng, SA.
Hugo, Buyer, Interbrand, Johannesburg, Gauteng, 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

06/02/1964: Wouter Joubert, TFG Apparel Supply Co, Cape Town, W. Cape, SA.
06/02/1971: Carel Pretorius, Pep, Cape Town, W. Cape, SA.
07/02/1957: Arun Prag, Prag Shoes and Leatherworks, Somerset West, W. Cape, SA.
08/02/1949: Jeff Isaacson, agent, Durban, KZN, SA.
08/02/1950: Miles O’Brien, retired, formerly Jordan Shoes, Cape Town, W. Cape, SA.
08/02/1955: Mukesh Merchant, Merchant’s Outfitters, Port Elizabeth, E. Cape, SA.
08/02/1972: Kiran Pattundeen, Palm Footwear, Durban, KZN, SA.
08/02/1975: Hugh Hansen, CL Hansen Agencies, Durban, KZN, SA.
09/02/1970: Cassim Shaikh, Whitewood Investments t/a Shoe Lala, Durban, KZN, SA.
09/02/1971: Anthony Lopez, Lopez Leathers, Cape Town, W. Cape, SA.
09/02/1973: Steven Govender, ?, formerly Spunlok Laminators, Pinetown, KZN, SA.
09/02/1979: Mahomed Tadia, Less Price Fashions, Delmas, Mpumalanga, SA.
09/02/1989: Tahir Jeewa, Traford Footwear, Durban, KZN, SA.
12/02/1951: Jack Bassage, Myganox, Pietermaritzburg, KZN, SA.
12/02/1961: Jon Robb, Neptun Boot, Pinetown, KZN, SA.
12/02/1968: Pino di Lembo, SA Crocodile & Exotic Skins Agencies, Johannesburg, Gauteng, SA.
12/02/1968: Sean Hadnum, Chillisource, UK.

07/02/2020: Dave Moss (b. 10/06/1954), Sneakers International, Durban, KZN, SA.
08/02/2016: Vishal Rishidaw, Smiley’s Footwear, Durban, KZN, SA.
08/02/2020: Mike Wakeling (b. 18/05/1949), Clarks Footwear, UK, Edworks, Jack & Jill and Millana Shoes, Port Elizabeth, E. Cape, SA, Matchpoint Agencies, Johannesburg, Gauteng, SA.
09/02/2006: Hubertus ‘Hub’ Bijsterveld (b. 11/12/1932), Bata Zimbabwe and other Bata companies, Gweru, Zimbabwe.
10/02/1997: Don Craig, Cape Knife, Cape Town, W. Cape, SA.
10/02/2021: Dhanilall 'Tom' Baijnath (b. 05/11/1938), Western Tailors, Durban, KZN, SA.
11/02/2009: Frederick Bernard Cattell (b. 17/08/1917), Cattell’s, Springs, 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.

Fairs updated last week

13-15 March 2023: APLF Dubai, Dubai World Trade Centre, Dubai.
01-03 May 2023: 15th International Apparel & Textile Fair (IATF), Dubai World Trade Centre, Dubai.
29-31 August 2023: All China Leather Exhibition (ACLE), Shanghai, China.

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/

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (02 February 2023) - The current average hide price remained unchanged at R4.18/kg from a week ago. The current price is 0.8% higher than the average price a month ago and 25.6% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R3.67 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:
Jeilo Collections, Nairobi, Kenya. Online handbag retailer.
Jenebella, Somerset West, W. Cape, SA. Shoe and handbag retailer.

Contact us

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

Next newsletter: February 13, 2023.

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

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