Newsletter No.43 25 November 2016
Mr Price’s home division offsets slump in clothing sales
Retailer Mr Price managed to offset some of the slump in clothing sales with better performance by its other divisions.
Picture: Sunday Times
Mr Price’s share price fell 7.15% on Friday ahead of the release of its results on Monday morning after competitor Woolworths warned there had been a price war among clothing chains clearing winter stock.
Operating profit in Mr Price’s apparel division was down 26.7% to R779m on a 0.3% sales decline to R6.3bn for the 26 weeks to October 1 compared with the year-earlier period, the company said in its interim results statement on Monday.
“We should have taken winter markdowns earlier,” said CEO Stuart Bird. “Our assortments and marketing should also have been more focused on value rather than fashion in this climate.”
The group’s Miladys chain performed well below expectations and was undergoing a change in merchandise fashion pitch to refocus on its core customer, Bird said.
Operating profit in Mr Price’s home division, on the other hand, jumped 20.4% to R364m while sales grew 2.3% to R2.3bn.
Its financial services and cellular division grew operating profit 4.1% to R181m while sales jumped 27.2% to R524m.
The group’s overall interim revenue grew 1.5% to R9.2bn while after tax profit fell 13.9% to R921m.
Mr Price cut its interim dividend by 8% to 228.2c.
Cash sales were up 1.9% and constituted 82.6% of total sales, while the introduction of new credit regulations in September 2015 continued to affect credit sales, which were down 6.2%. Selling price inflation was 11.4% and unit sales were 10.2% lower.
The retailer said in its results statement that it was in a R74.4m dispute with the South African Revenue Services (SARS). The dispute dates back seven years when SARS claimed Mr Price was liable for a R43.6m tax bill owed by one of its suppliers.
Mr Price said it took SARS five years to respond to its original response to the demand, and it “is now awaiting correspondence from SARS detailing a list of the facts or issues which they deem to be in dispute”.
ITL SA wins IS0 12647-2 Certification
November 24th 2016, Cape Town, South Africa – As part of an ongoing Global Offset Print Excellence Initiative, ITL announced today that they have attained IS012647-2 certification for their Cape Town litho production facilities.
Working in partnership with Mellow Colour, a global leader in providing print quality management solutions, the accreditation for ITL’s largest South African factory adds to their list of globally certified factories which have already completed the process over the last two years.
ISO 12647-2 is the recognised global standard of certification and as such, only printers who are able to demonstrate complete and sustained management of all print related processes, including pre-press and consumables, are awarded this coveted status. ITL is the first printer to achieve this certification in South Africa.
Speaking at the group’s Cape Town headquarters, ITL’s CEO, Fred Christopher, commented “We are delighted to have added our Cape Town factory to the list of ITL certified facilities. We have always recognised the role that ISO-12647 plays in achieving the highest level of continuous print quality and a more efficient and environmentally sustainable manufacturing platform.”
Alan Dresch, Managing Director for Mellow Colour added “The most impressive element of the ITL Quality Management System is not actually measured in the audit document itself. That element is teamwork, and this is where the ITL group excels. I am sure the Company will now start to see measurable gains in customer satisfaction and a generally more standardised and efficient way of working.”
ITL is a worldwide supplier of branded label and variable data solutions to the apparel industry. Globally located in all major sourcing regions, the company has over thirty years’ experience of supporting some of the world’s best known brands and retailers with a comprehensive range of labelling and ticketing solutions including branded swing tickets, heat transfers, woven labels, printed fabric labels, RFID and data management programs.
Forex scarcity threatens Nigerian textiles: NTMA
The textile industry in Nigeria may face extinction if the Central Bank of Nigeria (CBN) does not allow the manufacturers access to foreign exchange (forex). The textile manufacturing industry is in crisis with the non-availability of forex for procurement of raw materials. If this situation prevails, few of the manufacturers may suspend production.
The concern was raised by Hamma Kwajaffa, director-general of the Nigerian Textile Manufacturers’ Association (NTMA) in an interview with the News Agency of Nigeria in Lagos. However, it was on November 7, 2016 that CBN had released $660 million to the manufacturers to source raw materials and spare parts, as reported by the Nigerian news agency.
The textile industry is on the brink of crisis, said Kwajaffa, adding that the number of appeals made by the manufacturers for access to foreign exchange also went in vain. In an attempt to allow NTMA members access to forex, Kwajaffa had also called for improved collaboration between the apex bank and commercial banks.
“To access foreign exchange, we have to go through our banks. They keep telling us that they do not have foreign exchange to give. The situation has impeded our production activity because most of our production components cannot be sourced locally. By now, many companies ought to have fabrics in the market for Christmas season but they cannot do that. Some of the manufacturers have already stopped production, and it is becoming difficult to convince others not to suspend production,” Kwajaffa said.
“Easy availability of foreign exchange will allow textile manufacturers access to procure raw materials, and thus help in enhancing production, resulting in job creation and increased contribution to Nigeria’s gross domestic product,” he added.
At the peak of the economic boom in the early 80s, Nigeria had 84 textile mills. The number has dropped to 24 now. The workforce in these industries nationwide has also been reduced from 250,000 to about 20,000.
Innovative Home Textiles
Home textiles can instantly attract one with its style, color, and variety. It adds a touch of one’s individuality to the ambience of one’s home, and makes one feel warm and comfortable. Today, innovative home textile products have been introduced which have amazing features, utility, and gives utmost comfort to the user. These home décor furnishings, accessories, and fabrics together make a house, a home.
At present, one can find variety of innovative home décor textiles to suit ones preferences and mood. A soft and warm blanket or a teddy bear can make one feel very cozy after a long tiring day. It is the intrinsic quality of that fabric that makes one feel so relaxed and comfortable. If the right textiles are used for home furnishings, it can restore the warmth, and are available in various colors, likable prints, quality, and fabrics.
Whether it’s a soft velvet or shiny silk material, fabrics for home furnishing gives joy to the eyes. One should not neglect the physical joy and a little luxury that these textiles bring to our lives, when considering the options for home décor. However, selecting the right textile to decorate different areas of the home which will portray one’s style and also look hospitable is a task.
Talking about innovative home textiles, one cannot miss to mention about smart carpets. Carpets give warmth and comfort to us but gradually it also attracts dirt and odor. With the new technology, carpets are produced that can counteract bad odors before they permanently settle in the carpet. This magic carpet has chemical components that absorbs bad smell and counterbalance the odor. Besides neutralizing the odor, it is easy to clean and is durable too. Also, cleaning the carpet does not reduce or remove its odor reducing properties.
Moreover, nowadays there are many novel curtains available in the market. Like solar curtains, magnetic curtains, automated curtains. For people who want the heat of the sun to remain out of the room at the same time using the solar energy, solar curtains are good options. It does not block the outside view and keeps heat out of the room. These curtains are translucent, flexible and use sunlight as electricity. They have solar panels on the roof that can turn the heat into energy to power the air-conditioner in the room.
Magnetic curtains are created by modern interior designers. It can take any shape or form and stay the way one wants. This is because it has innumerable small magnets on its surface. The magnets are integrated is such a way that it can stay in the shape; one push or pulls. Since, it can take any shape; it is very flexible and adjustable. They are durable and do not particularly need maintenance. And the best part is, it goes well with modern as well as traditional home décor.
Kurgan Kenani leather,one of SA’s leading small leather goods manufacturers, est. 1928, has merged with Barksole…the Western capes leading retail shoe and luggage repair centre,with over 35 stores.
Did you know…..
Before Queen Victoria’s white wedding, white was a color traditionally associated with mourning.
In 1571, Queen Elizabeth I decreed that all women over the age of 7 had to wear hats on Sunday.
Marie Antoinette was actually super modest and wore a high-cut flannel gown while bathing so nobody could catch a glimpse of her naughty bits.
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