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

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Steve Cole
Xerium Technologies

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search