S&V Weekly Newsletter Vol.10 No.27, July 1 2024

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Footwear, tanning settle wages

Ilhaam Ryneveld, general secretary, National Bargaining Council of the Leather Industry of SA
Durban, KZN, SA – Regarding the Footwear Sector, we can confirm that an increase of 6.5% was agreed upon, but some aspects of the Task Teams are still being finalised.
      The Tanning Sector also concluded a 2-year agreement,  with an increase of 6.5% effective from 01/07/2024 till 30/06/2025 and 6.5% effective from 01/07/2025 till 30/06/2026.

Nike forecasts surprise revenue fall as upstarts steal market share; stock dives

Reuters
27 June 2024 – Nike on Thursday forecast a surprise drop in fiscal 2025 revenue, hurt by faltering demand for its sneakers as consumers covet newer brands such as On and Hoka, pushing its shares down over 12% after hours.
      Nike said it expects a mid-single-digit percentage fall in annual revenue. Analysts expected a 0.91% rise, according to LSEG data. Fourth-quarter revenue also missed estimates.
      The company's stock, which has declined 13% so far this year, was set to lose more than $15 billion in market value if the losses hold on Friday.
      The Air Jordan maker's efforts to drive more sales through its direct-to-consumer channel, mainly in North America, has been unsuccessful so far, as customers have become pickier about what they spend on. Rival brands On and Deckers' Hoka have taken away some of Nike's market share with their more fashionable products.
      Shares in these two companies also slipped between 1% and 2% in post-market trading.
      To stem a worsening decline in sales, Nike has cut back on oversupplied brands such as Air Force 1, poured money into making better running shoes - more cushion under the midfoot to increase stability - and is planning a fresh iteration of the popular Air Max line.
      It is also betting that Olympics this year will help it win back some market share by spotlighting performance products such as the Alphafly 3 racer and the Pegasus running shoe.
      "Nike is trying to sell a narrative that it's reinventing," said GlobalData analyst Neil Saunders. "But the numbers they have given ... for 2025, really suggest a company that's in a bit of trouble and the things they're doing just are not going to deliver across next year."
      In North America, "this quarter we saw softer traffic in our factory stores highlighting increasing pressure being felt by the value consumer," Nike CFO Matthew Friend said on a post-earnings call.
      To woo price conscious customers, Nike said it will offer a refreshed lineup of footwear below $100.
      Nike's US market share in the sports footwear category in 2023 fell to 34.97% in 2023 from 35.37% in 2022, and 35.40% in 2021, according to GlobalData.
      Weak demand in Nike's international markets, including China, is also hurting sales, Friend said. Brick-and-mortar traffic in China during the March-May quarter fell in the double digits.
      Greater China accounted for 14.7% of Nike's 2024 revenue; North America made up 42%.
      In the run up to Olympics, Nike is touting its roots in pure sport. It said earlier it was spending more on this Olympics than any previous Games.
      "The Paris Olympics offers us a pinnacle moment to communicate our vision of sport to the world. This is led by breakthrough innovation and announced by a brand campaign that you won't be able to miss," CEO John Donahoe said on the call.
      He said Nike was putting "sport back at the centre of everything we do, serving the athlete."
      Among bright spots in its earnings report card for the fourth quarter, revenue in Nike's wholesale business rose 5%. But growth in its direct-to-consumer business fell 8%.
      Fourth-quarter net revenue slipped 1.7% to $12.61 billion falling short of estimates of $12.84 billion.
      Nike's $2 billion cost savings plan including layoffs, also helped the company's adjusted earnings of $1.01 top estimates of 83 cents.
      For the first quarter, Nike forecast a roughly 10% fall in revenue, compared with expectations of a 3.16% fall.

They Said It

"Hey Tony – it’s been a while my good man. Trusting you are well. There is nothing for now." - Chimwemwe Mwanza, senior corporate writer, Corporate Affairs, Industrial Development Corporation, Johannesburg, Gauteng, SA. Sometimes, a rejection can be packaged in such a nice way that you really don’t mind.

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

New subscribers last week

Cherie Adendorff, Sales Executive, Messe Frankfurt SA, Cape Town, Western Cape, South Africa
Rocco Kruger, Entrepreneur, Koffiefontein, South Africa
Brian Da Costa, Freelance Sales Representative, Port Elizabeth, South Africa
Stacey, Head of Department, John Craig, Johannesburg, South Africa
Sonja Turner, Sales and Marketing Manager, Badger Shoes, Port Elizabeth, South Africa
Nigel Sale, Director, Smerilli Design Manufacturing, Gauteng, South Africa

Birthdays this week

01/07/1953: Bobby Janky, retired, formerly Michelle Footwear, Durban, KZN, SA.
01/07/1963: Tommy Sharma, Bata SA, Pinetown, KZN, SA.
02/07/1949: Maria Augusta Craveiro, Goosie’s, Ladybrand, Free State, SA.
02/07/1959: Leo Greef, formerly Southern Hemisphere Trading Trust, Uitenhage, E. Cape, SA.
02/07/1967: Yusuf Vadi, The Cross Trainer, Johannesburg, Gauteng, SA.
02/07/1971: Rajeev Matai, Equator Belt, Pinetown, KZN, SA.
02/07/1971: Suritha Naicker, Ethekwini Leather, Durban, KZN, SA.
03/07/1971: Steven Coetser, Safety Smart, Pinetown, KZN, SA.
03/07/1949: Pieter Coetzee, Assegaay Bosch Ranch, Van Wyksdorp, W. Cape, SA.
03/07/1976: Michelle van Emmenes, Paris Belts, Johannesburg, Gauteng, SA.
04/07/1952: Eddie Lahee, formerly Shoeperama [closed], Durban, KZN, SA.
04/07/1956: Warren Wareing, Island Style, Durban, KZN, SA.
04/07/1967: Martin MacGregor, Bay Solutions, Port Elizabeth, E. Cape, SA.
04/07/19??: Clare Jones, Zip-Code, Umhlanga, KZN, SA.
05/07/1941: Judy Powell, formerly Footwork, Johannesburg, Gauteng, SA, retired to Uvongo, KZN, SA.
06/07/1974: Gary Gilder, formerly Bolton Footwear, Cape Town, W. Cape, SA.
07/07/1953: Khalit Ghoor, Hagels, Brits, N.W. Province, SA.
07/07/1955: John Kotze, Designer Marketing Int. Johannesburg, Gauteng, SA.
07/07/1959: Lenette van Vuuren, Incredible Shoes, Ladysmith, KZN, SA.
07/07/1965: Anil Rupnarain, Michelle Footwear, Durban, KZN, SA.
07/07/1966: Sakkie Kriel, Vellie Boutique, Boksburg, Gauteng, SA.

In memoriam this week

01/07/2016: Matthew Barnard (b. 07/05/1936), Stanhope Boot & Shoe, Pinetown, KZN, SA.
02/07/1997: Clemente Villani, Villani Shoes, Johannesburg, Gauteng, SA.
02/07/2010: Justin McCarthy (b. 29/01/1958), Groundcover, Curry’s Post, KZN, SA.
02/07/2019: Cecil Hansen (b. 08/01/1936), C.L. Hansen Agencies, Durban, KZN, SA.
03/07/2021: Debbie Ditchfield (b. 15/10/1975), machinery agent, Hillcrest, KZN, SA.
04/07/2010: Kasieprasad Pattundeen (b. 29/12/1924), Palm Footwear, Durban, KZN, SA.
05/07/1999: Norman Berrill, Jack & Jill [closed], Port Elizabeth, E. Cape, freelance designer, Durban, KZN, SA.
06/07/1996: Eric Waterworth, King Tanning Company [closed], Pietermaritzburg, KZN, SA.
06/07/2020: Malcolm Novos (b. 28/04/1949), Economic Shoe Store, Paarl, W Cape, SA.
07/07/1993: Rob Scallan, Tuftex, Port Elizabeth, E. 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.

3. Malawian Kwacha (MWK) (buying)

Source: https://www.rbm.mw/

4. Zambian Kwacha (ZMW) (buying)

Source: https://www.boz.zm/

5. Zimbabwe Dollar (ZWL$) (average) / Zimbabwe Gold (ZiG)

Source: Source: https://www.rbz.co.zw/

Note: For previous rates, see HERE

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (27 June 2024) - The average hide price decreased by 0.41% to 3.214/kg from R3.2/kg a week ago. The current price is 0.09% higher than the average price a month ago and 4.9% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R3.00 Maximum price: R3.25. Price movements will be highly influenced by developments in the status of our animal diseases. 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, and Zama Sangweni, 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:

Swanks, Mbabane, eSwatini. Women’s clothing.
Swanky Modes, Durban, KZN, SA. Women’s boutique.

THIS WEEK LAST YEAR!

Eddels GM Steven Jacobs provided an update after 3 months under new ownership.

Ian Carroll had recently joined clothing business FS Trading to set up a footwear range.

Former Eddels GM Craig Bowes was “doing some work for Celrose at the moment”.

For those that missed it: The June issue of S&V Footwear & Leather Goods Magazine 2023

Chené Jacobs provided an update on the health of Tarzan Shoes director, John Olde Olthof.

Iqbal Hajat director of Footwear Centre in Blantyre, Malawi was looking for suppliers of childrens shoes.

Adidas launched its largest store in Africa at Gateway Shopping Centre.

READ IT HERE - S&V WEEKLY NEWSLETTER VOL.9 NO.27, JULY 03 2023

THIS WEEK FIVE YEARS AGO!!

Retailers feedback for the previous week was not great with a slight tinge of optimism.

Llewellyn Whitfield refuted rumours that Corbeau cc was closing.

Jody Henry had left Bolton Footwear to join The Basic Group.

Hayley Roberts had joined Labora Shoes as a designer for its women's fashion brands Flourish and ICHUME.

Jirka Vymetal announced that the SAFLIA AGM was to remain in KZN.

READ IT HERE - S&V WEEKLY NEWSLETTER VOL.5 NO.26, JULY 1, 2019

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