S&V Weekly Newsletter Vol.11 No.5, February 3 2025

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Finished goods suppliers: Current order situation (responses in company alphabetical order)

Chanti Belt & Buckle Manufacturers: Talk of improvement, but little sign of it

Seelan Naidoo, member
Durban, KZN, SA – The order position for our synthetic belts for winter isn’t very good. Much the same as last year this time. Towards the end of last year people were forecasting an improvement, but there’s no sign of it so far so far. However, there are lots of enquiries for sampling, so we’re hoping something comes of that.

Planet Events: Slow, but that’s normal

Paul Moodley, CEO
Durban, KZN, SA – As is normal in January and February, the order book for unit makers is slow. We have to develop a few new PVC and TR units, and manufacturers are coming to us, looking for new ideas.
     I was off work for the last 6 months of last year, but I expect to be back in February.

Quad Rocky: Growth fuelled by brand acceptance in main market

Jeremy Nel, Brand Manager Wildebees
Pinetown, KZN, SA – Sales of our Wildebees brand are well up for winter 2025. The brand is aimed at the outdoor and hunting markets, which includes chains and mini chains as well as key outdoor independents. The growth is attributed to loyal consumer voting for a quality outdoor brand.
     We presell, so we’re currently working on launching Winter 2026.

Financial results

Truworths International Ltd 26-week period to 29 December 2024

Truworths Africa down, Office up over 11%

Cape Town, W. Cape, SA – At the moment we have enough orders to work 5 days a week until the middle of February. Then I’m not sure. Most of our business is replenishment of some basic items for a couple of chains.
As an industry, we can’t make the variety, the newness, that the chains can get from China. That’s our challenge. It’s not only sneakers. Currently, footbed sandals are a very popular item for the chains, but nobody here makes the composite unit and footbed.

Account sales comprised 47% (Dec-23: 48%) of Group retail sales, with cash sales increasing by 5.3% and account sales decreasing by 0.9%, relative to the prior period.

Truworths Africa experienced a retail sales decrease of 1.1% relative to the prior period. Account sales decreased by 0.9% and comprised 70% (Dec-23: 70%) of the segment's retail sales for the current period. Cash sales decreased by 1.6%. Online sales continued to show good growth in the current period, increasing by 38% and contributing 5.8% to Truworths Africa's retail sales. Gross trade receivables in respect of the active account portfolio decreased by 1.6% to R7.1 billion (Dec-23: R7.2 billion). The number of active accounts decreased by 0.7%. Active account holders able to purchase and overdue balances to gross trade receivables were unchanged relative to the prior period-end at 83% and 12%, respectively.

The Group's Office UK segment continued its impressive trading performance, driven by its successful store modernisation and expansion programme, a top-tier e-commerce platform, and strong, well-established brand partnerships. Despite the broader challenges in the UK market, retail sales in the Office UK segment increased in Sterling terms by 11.3% to £180 million, following a strong performance in the prior period which recorded retail sales
growth of 15.6% to £162 million. In Rand terms, retail sales for Office UK increased by 9.9% to R4.2 billion. Online sales for the current period increased by 7.0% and comprised 45.2% of total retail sales (Dec-23: 47.1%).

Notwithstanding retail sales growth at a Group level, estimated earnings are expected to decline compared to the prior period, mainly due to the decrease in sales and expected gross profit margin decline in Truworths Africa. The Group estimates its earnings per share ('EPS') and headline earnings per share ('HEPS') for the current period, on an undiluted basis, to be within the ranges reflected in the table below:

The variance between the change in EPS and HEPS for the current period relative to the prior period relates mainly to the reversal in the prior period of previously recognised right-of-use asset impairments. Such impairment reversal is included in earnings but excluded from headline earnings.
     Shareholders are advised that this business update and voluntary trading statement do 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, 27 February 2025.

VF Corporation 3rd quarter 2025

North Face, Timberland up, Vans, Dickies down, DTC down, wholesale up, most growth in APAC region

The North Face
• +5% vs LY • Broad-based growth across channels and regions, with strong holiday • Americas performance positive on lower promotions, driven by enhanced merchandising and operational execution • Strong performance of The North Face® x SKIMS collaboration • Product awards received at year-end for 2024, including Runner's World Gear of the Year highlighting the AltaMesa 500
Vans
• (9)% vs LY • New products continuing to outperform icons, driven by Knu Skool, with momentum in Hylane and Upland • OTW® Holiday collaborations heightened elevation strategy and generated strong sellout: Satoshi partnership, HommeGirls, S.R. Studios.LA.CA, Mary Jane Elevate by Beatrice Domond • Continued surf commitment as primary sponsor of Pipe Masters
Timberland
• +11% vs LY • Positive revenue inflection with growth across all regions • Yellow Boot momentum continues, supported by 'Iconic' campaign's singular global message •Brand heat drove strong holiday performance with broad-based quality sales • Products aligned to crafted, weather-ready heritage style performed well including the Redwood Falls and Britton Road boots, Women's Stone Street franchise and Winnick Jacket
Dickies
• (10)% vs LY • Soft traffic and pressured wholesale remain as headwinds • Inventory rightsizing continues with on-hand levels improving •Rebuilding confidence in work channels with key account partners

By region
• Americas +1% vs LY • EMEA +1% vs LY • APAC + 5% vs LY

By channel
• DTC (3)% vs LY • Wholesale +8% vs LY

They Said It

"Thank you for your birthday message. I am 16 years young plus 45 years’ experience." - Saleem Khamissa, His Place, Port Shepstone, KZN, SA, who turned (whisper) QUITE OLD on the 19th of January.

"We closed more than a year ago. There are very few top end clothing shops still in business. This was our niche market. We now supply on demand only." - Charles Poole of Design Unique Belts, East London, E. 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

New subscribers last week

Ilhaam Ryneveld, General Secretary / Principle Officer, National bargaining council of the leather industry of South Africa
Muneeb, Durban, South Africa
Ronald Naidoo, Product Development, Bata SA, La Lucia, Durban, South Africa

Birthdays this week

03/02/1963: Vusumzi Mabuto, NULAW, Port Elizabeth, E. Cape, SA.
03/02/1965: Grant Daniel, retired, formerly Mendelson Frost, Johannesburg, Gauteng, 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.
09/02/1979: Mahomed Tadia, Less Price Fashions, Delmas, Mpumalanga, SA.
09/02/1989: Tahir Jeewa, Traford Footwear, Durban, KZN, SA.

In memoriam this week

03/02/1977: Ismail Adam Moosajee (b. 28/08/1927), Seltex, Johannesburg, Gauteng, SA.
05/02/1999: Adolf Vymětal (b. 30/05/1916), Bata Zlin, Czechoslovakia (now Czech Republic), and Zimbabwe Bata Shoe Co., Gweru, Zimbabwe.
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.

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.

Directory entries updated last week

Chanti Belt & Buckle Manufacturers cc, Durban, KZN, SA.

3. Malawian Kwacha (MWK) (buying)

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

4. Zambian Kwacha (ZMW) (buying)

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

5. 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 (30 January 2025) – The current average hide price decreased by 0.16% to R2.794/kg from R2.798/kg a week ago. The current price is 0.44% lower than the average price a month ago and 14.93% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R2.75 Maximum price: R3.00. 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, 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:

Smitty’s Family Outfitters, Germiston, Gauteng, SA. Family outfitter.
Sneaker District, Johannesburg, Gauteng, SA. Footwear store.

THIS WEEK LAST YEAR!

Billboard company suing Drip Footwear

Naked Feet hit in robbery

READ IT HERE - S&V Weekly Newsletter Vol.10 No.06, February 5 2024

THIS WEEK FIVE YEARS AGO!!

Retail so far this year

New MD for Bata SA

Stock Exchange News Service (SENS)
- Woolworths - trading update
- Pepkor - Moody's credit rating
- Massmart - Sales update, trading statement

READ IT HERE - S&V Weekly Newsletter Vol.6 No.05, February 3, 2020

Contact us

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

Next newsletter: Monday 10 February, 2025. Ad and editorial deadline Friday 7 February.

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

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