|
Report No. : |
340822 |
|
Report Date : |
22.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
FOX-WIZEL LTD. |
|
|
|
|
Formerly Known As : |
WIESEL TEXTILE MARKETING LTD. |
|
|
|
|
Registered Office : |
P.O. Box 76,
Airport City, 6 Hermon Street, AirPort City Park, Airport City 7019900 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Financials (as on) : |
30.06.2015 [Consolidated] |
|
|
|
|
Date of Incorporation : |
1990 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Designers, importers, manufacturers, marketers, exporters and
retailers of apparel and fashion accessories |
|
|
|
|
No. of Employees : |
3,769 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Israel |
B1 |
B1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
FOX-WIZEL LTD.
Telephone 972 3 905 01 00
Fax 972 3 905 02 06; 905 02 00
P.O. Box 76, Airport
City
6 Hermon Street
AirPort City Park
AIRPORT CITY
7019900 ISRAEL
Originally
incorporated as a sole proprietorship in 1990. Converted into a private limited
company, registered as per file No. 51-215760-3 on the 01.06.1995. Originally
registered under the name WIESEL TEXTILE MARKETING LTD., which changed to the
present name on 23.01.2002.
On 15.04.2002
published a prospectus offering shares to the public on the Tel Aviv Stock
Exchange (raising a sum of NIS 48 million) and on 1.8.2002 converted into a
public limited company (Registration number remain as before).
Authorized share
capital NIS 150,000.00, divided into -
15,000,000
ordinary shares of NIS 0.01 each,
of which
13,476,211 shares amounting to NIS 134,762.11 were issued.
1.
WIESEL HOLDINGS A.I.H LTD., 25.43%, equally owned
by Harel Eliezer Wiesel, Iftach Wiesel and Assaf Wiesel,
2.
Avraham Dov Fuchs (through TRICO FOX LTD.), 25.03%,
3.
MIGDAL Group and YELIN LAPIDOT Group, - 2
institutional investors, holding 11.28% and 6.49% respectively,
4.
Shares are also traded on the Tel Aviv Stock
Exchange.
1.
Avraham Zeldman, Chairman,
2.
Harel Wiesel, General Manager,
3.
Avraham Dov Fuchs,
4.
Israel Maimon,
5.
Alon Cohen,
6.
Ms. Osnat Ronen.
Designers,
importers, manufacturers, marketers, exporters and retailers of apparel and fashion
accessories under the brand name “Fox”, under 4 categories: "Fox
Men", "Fox Women", "Fox Kids" and "Fox
Baby", as well as stores under brand names "American Eagle" and
"Aerie" ("AE" Brand), "The Children's Place",
"Yanga", "Charles & Keith" and "Marsha" shoe
brand.
In addition,
operating NIKE and MANGO brand stores.
Also importers and
marketers of household product branded "Fox Home".
Sales are to
subject's shops, to wholesalers, institutional organs, as well as to subject’s
concessionaires overseas.
Manufacturing is
carried out through some 20 suppliers and subcontractors abroad (though working
mostly with 2 large subcontractors).
Major foreign
supplier: WINGSRICH, Hong Kong/ China.
As of 30.06.2015,
operating 285 branches in Israel of which 171 "Fox" brands including
36 stores of "Fox Home" brand and 16 combined "Fox" apparel
and "Fox Home" stores, as well as 41 branches of "American
Eagle" apparel and "Aerie" lingerie brand. Also operating 32
"The Children's Place" retail stores, as well as 4 NIKE retail
stores, 11 Charles & Keith shops as well as 30 MANGO retail stores and 11
NIKE stores.
operating via
concessionaires through 228 retail stores and Points of Sale abroad under the
name "Fox" and "F&X" in 15 countries.
Subject, via its
subsidiaries, also marketers clothes and fashion accessories under the brand
name “Sacks” – 16 branches, "Billabong" – 36 branches,
"Yanga" – 8 stores, and home care and body care products under the
name "Lalin" – 97 branches (plus 21 "Lalin" concessionaire
stores abroad). Also operating 8 points of sales in local malls of
"Marsha" + 11 points of sale abroad.
Advertising
agency: GITAM BBDO.
Operating from
rented premises (headquarters and offices, warehouse and logistics center), on
an area of 15,680 sq. meters (12,600 sq. meters built), in 6 Hermon Street, Fox
House, Airport City Park (near Ben Gurion Airport, Lod), from Logistics center
in Modi'in, and from shops nationwide (as of 31.12.2014 rents 230 active shops,
situated mainly in shopping malls and centers).
Note: some stores
are combined stores which are considered 2 stores.
Landlord in
Airport City: TNUVOT KESHET.
There are 3,769
employees in FOX – WIZEL Group as of end of 2014 (had 3,940 employees in the
end of 2013).
In June 2006
subject issued bonds to the public through the Tel Aviv Stock Exchange, raising
a sum of NIS 70 million. In December 2008 subject announced on self purchase of
its bonds (issued May 2006) up to total of NIS 10 million.
Consolidated B/S shows:
NIS
(thousands)
ASSETS 31.12.2014 30.06.2015
Current assets:
Cash and
cash equivalents 195,787 72,571
Sort term
investments & financial assets 136,846 114,072
Customers 116,879 108,857
Other
debtors 58,361 118,950
Stock 253,764 230,884
761,637 645,334
Non-current assets:
Investments in affiliated companies 125,963 179,104
Fixed assets (net) 220,216 199,494
Other non-current assets 85,928 106,172
432,107 484,770
1,193,744 1,130,104
======== ========
LIABILITIES
Current liabilities 242,727 214,438
Non-current liabilities 391,600 377,218
Equity 559,417 538,448
1,193,744 1,130,104
======== ========
Current market
value US$ 249.2 million.
There are 8
charges for unlimited amounts, as well as 2 charges for the total sum of US$
16,100,000 registered on the company's assets, in favor of Bank Leumi Le’Israel
Ltd., HSBC Bank Plc. and Bank Hapoalim Ltd. (last 2 charges placed
July-November 2013).
Consolidated
Statement of Income
NIS
(thousands)
Year
ended in 31.12
2012 2013 2014
Sales 1,064,614 1,047,700 1,119,575
Gross profit 610,881 619,733 665,652
Operating income 118,053 135,343 84,189
Pre-tax income 107,468 120,689 99,848
Net income 82,037 94,190 76,653
======= ======= =======
Consolidated sales
for the first 6 months of 2015 were NIS 640,879,000 (25% decrease comparing to
the parallel period in 2014), making a gross profit of
NIS 366,582,000, an operating profit of NIS 31,205,000 and a net
profit of NIS 16,480,000 (47% decrease
from parallel period in 2014).
FOX - WIZEL CHINA
LTD., 100%, a subsidiary in China.
FOX - WIZEL CYPRUS
LTD., 50%, Cyprus, operating branches in Europe.
FOX-LEVIEV LLC,
50%, Russia, inactive.
BILLY HOUSE LTD.
("Billabong Israel"), 50%, agents and marketers of Billabong surfing
apparel and goods. Holds 66.7% of MARSHA BALERINA LTD., import and marketing of
shoes.
A.H. FASHION
MANUFACTURE AND MARKETING 3020 LTD. (known as "Sack's"), 50%.
LALIN CANDLES AND
SOAPS LTD., 50%, manufacturers and marketers of home care and body care
products and accessories, including soaps, candles, body care items,
toiletries, ambiance products, etc.
LALIN
INTERNATIONAL LTD., 50%.
FOX WIZEL (BVI)
LTD., 100%.
YANGA LTD., 50%,
operating a retail fashion chain.
RETAILORS LTD.,
90%, operating 5 NIKE stores (see more in CHARACTER).
FWS RETAIL LTD.,
50%, operating the AE brand shops (see CHARACTER).
WIESEL REAL ESTATE
A.I.H. (1999) LTD.
TRICO FOX LTD.,
leasers of real estate.
Bank Leumi
Le’Israel Ltd., Principal Branch Tel Aviv (No. 800), Tel Aviv.
Also known to work
with:
HSBC Bank Plc.,
Main Branch (No. 101), Tel Aviv, account No. 500494.
A check with the Central Banks' database did not reveal anything
detrimental regarding subject a/m accounts.
In February 2010 a
motion was submitted to the court for the approval as a class action lawsuit
against LALIN, for NIS 109 million, which ended in compromise in September 2014
in which LALIN will provide compensation (via discount and increased package
size) in volume of NIS 2.5 million.
In December 2014,
a motion was submitted for the approval as a class action lawsuit against
subject for the sum of NIS 3.5 million.
In May 2015 a
motion was submitted for the approval as a class action lawsuit against subject
for the sum of NIS 50 million, claiming subject violated his privacy by
installing CCTV without notification.
It should be noted that the procedure for such
claims to be approved are usually long and in most cases eventually turned
down. We found no further information regarding this matter.
Apart from that,
nothing unfavorable learned.
FOX – WIZEL is a
leading vendor in fashion wear for women, men and kids in Israel, with
impressive growth rates over the last years, including expansion to overseas
markets.
Since 2005/6
subject (via concessionaires) also began expansion into the Eastern and Central
European markets, starting with Bulgaria and Romania, as well as to the Far
East (Singapore, Thailand). Since 2007/8 also expanded to Panama and Canada. Subject signed concession agreement with
Canadian SHERSON Group. In September 2009 the Canadian activities were closed.
Since 2009 subject
opened stores in Puerto Rico and expanded to other countries – to-date
operating in 11 countries, plus sells via local distributors in 8 countries.
In 2006 subject
acquired 50% of BILLY HOUSE LTD. ("Billabong Israel"), agents and
marketers of "Billabong" and "Rif" surfing apparel and
goods in Israel since
In March 2007,
subject completed the acquisition of 50% of LALIN CANDLES AND SOAPS LTD. and
LALIN INTERNATIONAL LTD., manufacturers and marketers of candles and soaps, in
consideration of NIS 12.87 million, in cash.
In June 2007,
subject acquired 50% of fashion retail store in chain (then, 4 boutiques)
Sack's (company name is A.H. FASHION MANUFACTURE AND MARKETING 3020 LTD.), for NIS
24.6 million. Sack's manufactures and markets women fashion to wholesalers, on
top of the retail stores.
In
2010 subject entered a new segment under the brand name “Fox Home” for home
textile and accessories. The household products market is estimated at NIS 1
billion annually and is considered saturated and highly competitive. Total
investment in 2010-2011 in this segment was estimated at NIS 22 million.
In July 2010 subject signed an agreement with American AEO
MANAGEMENT CO. to be the sole local representatives of "American
Eagle" and "Aerie" brands.
In
April 2015 FOX-WIZEL
established FWS RETAIL, to which it transferred its
AE brand activities. In May 2015 FOX-WIZEL
sold 50% of FWS to AMERICAN EAGLE for US$ 12.6
million.
In
May 2015, 4 AE retail stores were opened with an investment of NIS 5 million
In March 2013
subject started operating the "Marsha" shoe pointy of sale in malls
throughout Israel, and in August 2013 opened 2 points of sale in London.
In July 2013
subject received the franchise of the children's apparel brand "The
Children's Place", intending to open 10 shops, investing NIS 2 million in
each shop.
In December 2013
it was reported that subject will operate 3 stores of the cosmetic and makeup
company MAYBELLINE (part of LOREAL Group – though subject is not the local
representative of LOREAL and MAYBELLINE).
In May 2014 subject reported it received the
representation of CHARLES & KEITH INTERNATIONAL (C&K) to open a retail
chain store for women's shoes, bags and accessories. Estimated investment for
the first 8 years is NIS 30 million, all from subject's own resurces. In
February 2015 subject launced the first 2 shops, intending to reach 40
branchess in the next 3 years.
According to a report from February 2015, NIS 20 million
is intended to be invested in the brand launching.
In August 2014
subject acquired 50% of YANGA LTD., operating a retail fashion chain of 7
branches for NIS 9 million.
In August 2014
subject received from NIKE a non-exclusive representation, to open NIKE chain
store. According to a report from December 2014, subject intends to invest NIS
30 million, of which NIS 20 million from acquisition of stores of current
franchisers (in December 2014 subject acquired 4 shops for NIS 8.9 million + payment
for stock from franchiser VENDOME FASHION). Additional NIS 10 million will be
from opening new stores.
In March 2015
subject purchased 90% of RETAILORS, which owns 5 NIKE shops.
In September 2014 subject signed an agreement to acuire
the fashion chain MANGO (operating 29 shops)
from ELBIT IMAGING, for NIS 35 million, following an agereement with PUNTO of
Spain (owner of MANGO brand) paying it NIS 3 million for the franchise. Deal
was completed in January 2015.
In November 2014 it was reported that subject intends to
open 119 new stors in next 2 years: MANGO – 15 shops, CHARLES &
KEITH – opening first 13 shops in March 2015, and reaching 24 shops, Fox Home –
19 shops, The children's Place – 11 shops, American Eagle – 9 shops, Sacks – 6
shops, LALIN – 5 shops and Billabong –
4 shops.
In August 2015
subject's Board approved a structural reorganization (mainly in managerial
level) following receiving new brand representation.
Reportedly, total revenues of the local fashion
market in 2013 reached NIS 12 billion per annum. In 2012 sales reached NIS 11
billion. 40% of sales are in the large fashion chains, 34% in other smaller
chains, and the rest in private shops.
Based on surveys, around 50% and more is women's fashion.
Moreover, 40% of fashion stores in Israel belong to fashion chains, the rest
being private shops.
According to the
Central Bureau of Statistics (CBS), import of Clothing and Footwear in 2014
increased by 8.3% (in NIS terms, rose by 9.5% in $ terms), summing up to NIS
7,421.6 million. This comes after in 2013 import rose by mere 0.9% from 2012,
after climbing by 13% in 2012. Import rose by 5.6% (fell by 6% in $ terms) in
the first half of 2015 (comparing to the 1st half 2014).
Most import comes
from China. Main other countries of origin for textile goods are France, Italy,
Hong Kong and Turkey, Spain and the U.S.A.
The local fashion market has been significantly influenced
by the entrance of new international fashion players to the already highly
competitive local market.
To many players in the branch, the fierce competition,
coupled with the slow-down in local economy resulted in stagnation in sales and
drop in revenues. There have been also few collapses of veteran and big
retailers in some niches, including in the ladies fashion and children's
apparel.
From
RIS data, a firm that measures revenues from sales of 2,600 shops in Israel, in
2014 local consumers reduced their purchasing in the apparel branches,
witnessed in 1.5% reduction in revenues per meter in commercial centers (after
2013 ended in freeze compared to 2012).
From the CBS
National Accounts for 2014, it turns that private consumption expenditure, in
fixed prices, grew by 4% from 2013 (rose 3.3% in 2013 and 3.1% in 2012).
Consumption expenditure by households on semi-durable goods rose in 2014 by
7.6% from 2013 (after 1.8% rise in 2013, and 7.4% in 2012), of which
expenditure on Clothing and Footwear in 2014 rose by 10.7% from 2013 (after
2.2% rise in 2013 and by 8.5% in 2012).
The CBS first
estimate for the first half of 2015 points on 4.8% rise in private consumption
in annual calculation, after rise of 6.4% in the previous half and 0.6% rise in
the parallel half in 2014. Consumption expenditure by households on
semi-durable goods fell in this period by 4%, reflecting a 10.7% decrease in
expenditure on Clothing and Footwear.
Per-capita
expenditure in 2014 rose by 2% (after rise of 1.4% in 2013 and 1.2% in 2012),
and by 2.8% (in annual calculation) in the 1st half of 2015.
Good for trade
engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.75 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.74.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.