Home / Knowledge / News / Apparel/Garments / Economic slowdown to hurt Rex Trueform's FY'14
Economic slowdown to hurt Rex Trueform's FY'14
20
Dec '13
After posting muted earnings in the second six months of the fiscal year 2013 amid slowdown in the South African economy and weak rand against US Dollar, the local clothing retailer Rex Trueform is set for another flop show in the 2014 financial year.

The company is grappling with dull retail sales amid gloomy economic outlook, higher consumer debts levels, tight lending standards and rising living costs.

As indicated in its financial statements for the year ended June 30, 2013, the turnover of Rex Trueform Clothing Company's retail segment, which operates a nationwide chain of Queenspark and J CREW stores, decreased by 10.6 per cent to R474.4 million as against R530.6 million in 2012.

The gross profit margin decreased to 51.3 per cent compared to 53.6 per cent in 2012 mainly due to product inflation pressures resulting from the weakening of the Rand. The retail segment’s operating profit also decreased sharply by 151.3 per cent, resulting in loss of R14.7 million for the year.

The world’s favoured retail destination, the Republic of South Africa, which enjoys annual sales of more than R50 billion is in grip of serious economic slowdown with the economy expected to grow 1.9 percent this year, the slowest since a 2009 recession, according to central bank estimates, short of the more than 5.4 percent the government estimates.

Adding the woes, ongoing weakness in the South Africa’s rand exchange rate against the US Dollar will continue to add inflationary pressure to the cost of merchandise. The doldrums in rand was fueled by record cash outflows, as continued signs of growth in the US boosted dollar and forced foreign investors to dump local currency.

In addition, international brands continue to enter the local clothing retail market, intensifying industry competition.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Courtesy: Bombay Dyeing

Textiles | On 3rd Dec 2016

Bombay Dyeing to focus on retail; stops textile production

Bombay Dyeing, a Wadia group company, has decided to shift its focus...

Apparel/Garments | On 3rd Dec 2016

Q3FY17 net earnings slip 26.8% at denim retailer Guess

In the three months ended October 29, 2016, net earnings at denim...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search