| Newsletter No. 28 / 31 July 2020
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SA model Georgina Grenville secures the bag in Versace ad campaign
By Thobile Mazibuko
Georgina Grenville is starring in the new Versace PreFall 2020 ad campaign. Picture: Instagram/@georginagrenville
South African model, Georgina Grenville stars in the new Versace PreFall 2020 ad campaign.
The Durban-born supermodel, now based in London, Paris and New York, took to social media to share snippets of the new campaign.
For the campaign, Grenville leaves her luxurious home for the weekend, and before you know it, her daughters host a house party and turn it into something else.
Upon return, she notices that something massive happened while she was away but is quickly distracted by her two dogs dressed in her heavy jewellery.
The model has also worked with other big brands, walking for Off White, Torm Ford, and Salvatore Ferragamo, to name but a few.
Other South African models who have walked on the international stage include Siphosethu Ncise, a young male model from Khayelitsha, Cape Town. Ncise was scouted by Robin Fryer at an open day at 20 Model Management in Woodstock back in 2018.
Ncise went to Milan, where he walked for Jil Sander at Milan Fashion Week and got a photoshoot with Paolo Roversi. The editorial with Roversi made it to Vogue Hommes.
We also have Zozibini Tunzi, who made her international debut at New York Fashion Week, walking for Maxhosa. All that happened before she became Miss Universe.
She was featured in the ‘We Are Kings and Queens’, a range that Maxhosa dropped just after Tunzi was announced as Miss South Africa 2019. IOL
South Africa’s DTIC to focus on clothing masterplan
The department of trade, industry and competition (DTIC) of the South African government will focus on implementation of four masterplans, including one for the clothing and textiles industry, minister Ebrahim Patel said in his address to the National Assembly during the recent Budget Vote Session. The masterplans aim at increasing production and jobs.
From July 2019, the South African Revenue Services (SARS) has seized 550 shipping containers of “illegally-imported and undervalued clothing and footwear, to protect local industries and entrepreneurs,” Patel told Parliament.
“An agreement has been reached with the UK to maintain access for South African products in its market after Brexit and the country has also worked hard to build the African Continental Free Trade Area as the foundation for a long-term growth,” the minister said.
He stated that South Africa is well-positioned to become a major supplier of industrial goods and value-added services to the continent.
Mentioning that COVID-19 has exposed the fragility in the global economy, he said: “To prepare for the post-COVID world, we will strengthen efforts around reconstruction and recovery, including broader pacts with workers and businesses, focused on saving as many firms and jobs; identifying new opportunities; embracing digital technologies to recover and change; addressing economic inclusion with greater urgency”. F2F
Pepkor – Trading Update
The Pepkor group’s revenue for the nine months ended 30 June 2020 (“nine-month period”) decreased by 1.5% to R52.3 billion. This compares to revenue growth of 6.5% achieved for the six months ended 31 March 2020 and therefore highlights the negative impact of COVID-19 and the national lockdown during the third quarter where group revenue reduced by 17.2%.
It is estimated that the national lockdown period during April 2020 resulted in lost revenue of approximately R5.0 billion for the group. Very strong trade was achieved during May and June 2020 as lockdown measures eased and can be attributed to pent-up demand, social grant payments as well as the value propositions and market positioning of the group’s brands.
Sales levels for Pep and Ackermans were very positive during May and June 2020 after stores reopened. Trading proved resilient due to their defensive discount and value market positioning as consumers prioritise apparel spending in areas such as babies’ and children’s clothing with focus on basic and replenishment products. The national lockdown regulations impacted the reopening of schools which resulted in weak back-to-school trading.
For the nine-month period the Pep and Ackermans brands in aggregate, reported a decrease in sales of 0.4% with a decrease in like-for-like sales of 3.5%. Retail space expanded by 3.1% year-on-year with 22 new store openings during the third quarter.
The performance of Pep Africa, which contributes less than 3% to group revenue, was impacted by lockdowns and adverse macroeconomic conditions across most countries of operation. For the nine-month period constant currency sales declined by 11.5%, while like-for-like sales decreased by 14.0%. Sales at actual rates decreased by 19.8%.
The Speciality business which focuses on discretionary products such as footwear and adult apparel, performed well during May and June 2020 with positive like-for-like sales growth of 6.3% and 11.2% respectively. For the nine-month period sales decreased by 7.4% with like-for-like sales reducing by 9.8%.
Furniture, appliances and electronics
The furniture division’s retail brands were only allowed to resume trading from June 2020 but have also shown strong trading momentum since then. Credit granting criteria were tightened and the respective credit sales contributions in the furniture- and consumer electronics and appliances divisions reduced to 22% and 6% respectively compared to 28% and 7% contributions reported for the prior nine-month period.
Significantly curtailed credit granting characterised the quarter as the group reduced its exposure to unsecured lending through the Capfin business. Collections have been above expectation to date while a consolidation process is underway to reduce Capfin’s operating cost structure and support profitability going forward.
Pepkor – Steinhoff’s settlement claims
Shareholders and bond holders of the Company are referred to the SENS announcements issued this morning by Steinhoff International Holdings N.V. (“Steinhoff”) and Steinhoff Investment Holdings Ltd., which relate to the proposed settlement of litigation claims arising from legacy accounting issues (“the Steinhoff Announcements”).
As the proposed settlement referred to in the Steinhoff Announcements refer to the claimants receiving shares in Pepkor currently held indirectly by Steinhoff as part settlement of the claims, it is appropriate that these announcements be brought to the attention of shareholders and bond holders of the Company.
Further information is available on the Steinhoff website: www.steinhoffinternational.com
Woolies – trading update for the 52 weeks
Further to WHL’s operational update on 6 April 2020 and update on the Group’s strategic initiatives on 27 May 2020, both of which were published on the Johannesburg Stock Exchange News Service (‘SENS’), we wish to provide WHL stakeholders with a further trading update.
The extremely challenging trading conditions brought about by Covid-19 placed significant pressure on the performance of the Group. Group sales for the year ended 28 June 2020 (‘current year’) on a 52 week comparable basis were 0.1% lower compared to the pro forma year ended 23 June 2019 (‘prior year’), and declined by 1.1% in constant currency terms.
Second half (‘H2’) performance
Woolworths Fashion Beauty Home (‘FBH’) re-opened stores from the beginning of May 2020, following the easing of restrictions that permitted the sale of essential items such as winter clothing, footwear, personal care and bedding, with all categories trading from mid-May 2020. This saw the pace of sales decline slowing to 12.4% in the last nine weeks of H2, versus the 61.4% decline in the preceding eight-week period. FBH online sales grew by 41.3% during H2.
Woolworths Financial Services (‘WFS’) was negatively impacted by the closure of stores, lower non-essential spend and lower prevailing interest rates, all of which placed pressure on book and revenue growth. The deterioration in customer collections and macroeconomic indicators resulted in higher impairments over the period. The WFS book reflected positive year-on-year growth of 2.0% (9.0% at 31 March 2020), while the impairment rate for the 12 months ended 28 June 2020 was 7.9% (12 months ended 30 June 2019: 3.7%; 9 months ended 31 March 2020: 4.2%).
Constant currency information
Woolies – sale of Bourke Street Menswear store
Further to the announcement released on the Stock Exchange News Service on 27 May 2020, wherein the Company updated the market on the status of the sale of Bourke Street Menswear store, Woolies is pleased to announce that all conditions precedent to this transaction have now been fulfilled. The disposal price for the asset was AUD121 million, which is a favourable outcome. It is anticipated that the disposal proceeds will be received in early August 2020.
The net disposal proceeds will be applied towards the repayment of debt facilities. This is a key first step pursuant to the Group’s strategic review of the capital structure of the Australasian entities, which includes the reduction of its borrowings to ensure a more sustainable funding structure.
Shareholders are reminded that Woolies is currently in a closed period and will provide a further update on its key strategic projects as part of the Group´s financial results for the 52 weeks ended 28 June 2020.
TFG – board changes
Graham Davin, currently an independent non-executive director, has been appointed as the Lead Independent Non-Executive Director with effect from 1 August 2020.
Change in classification
Changes to committees
Mr Price – no change statement & notice of AGM
Shareholders are advised that the Company’s 2020 Integrated Annual Report (“2020 IAR”), which incorporates the audited annual financial statements for the 52 weeks ended 28 March 2020, has been distributed to shareholders and published on the Group’s website (www.mrpricegroup.com/mr-price-group-investor-relations.aspx), today, 28 July 2020.
The audited annual financial statements contain no modifications to the reviewed provisional Group results which were published on the Stock Exchange News Service (“SENS”) on Thursday, 25 June 2020.
There have been no changes to the review conclusion auditors report which was referenced in the reviewed results and made available to shareholders at the Company’s registered office on the same date as the release of the reviewed results on SENS.
Notice of annual general meeting
In compliance with the provisions of the Companies Act 71 of 2008 and the Company’s memorandum of incorporation, shareholders may participate in (but not vote at) the meeting by way of electronic participation. To obtain electronic participation details, shareholders or their proxies must contact the Company’s transfer secretaries, Computershare Investor Services (Pty) Ltd. (“Computershare”) on firstname.lastname@example.org by no later than 14h30 on Monday, 24 August 2020. Shareholders will be liable for their own network charges in relation to electronic participation at the AGM.
Did you know……..
The first clothing logo was a tiny embroidered crocodile, created in 1933. You can still see the crocodile in use today—it’s still used on clothing manufactured by French sportswear designer, Lacoste.
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