Harel Wizel takes a hit: Profits dive, sharp decline in sales
Retailors' reports for the second quarter of 2026 reveal a return to profitability compared to the previous quarter, but show a sharp decline in same-store sales for its leading sports brand worldwide.
The giant company Retailors, owned by businessman Harel Wizel, presented its financial reports for the second quarter of 2026 on Monday.
Company revenue in the second quarter totaled approximately 594.4 million NIS, compared to 602.0 million NIS in the same quarter last year, a moderate decrease of 1.3%. Gross profit for the quarter totaled 307.7 million NIS (about 51.8% of revenue), compared to 318.0 million NIS (52.8% of revenue) in the same quarter last year.
Operating profit for the quarter totaled 30.8 million NIS (5.2% of revenue), compared to 44.7 million NIS (7.4% of revenue) in the same quarter last year. Operating profit excluding IFRS 16 totaled 19.5 million NIS, compared to 24.7 million NIS in the same quarter last year.
Adjusted EBITDA totaled 44.4 million NIS, compared to 48.0 million NIS in the same quarter. Net profit for the second quarter totaled 11.2 million NIS, compared to 13.2 million NIS in the same quarter last year.
Compared to the first quarter of 2026, in which the company recorded an operating loss of 17.5 million NIS and a net loss of 36.2 million NIS, the company returned to operating and net profitability in the second quarter.
Sectoral Analysis
Nike segment: Revenue in the second quarter totaled 409.4 million NIS, compared to 419.0 million NIS in the same quarter last year, a decrease of 2.3%. The decline was mainly due to a drop in same-store sales and the strengthening of the shekel, partially offset by an increase in retail space.
Gross profit in the segment totaled 223.0 million NIS (54.5% of revenue) compared to 234.5 million NIS (56.0% of revenue) in the same quarter last year; this decrease is due to an increase in the average discount to customers. Operating profit in the segment totaled 20.4 million NIS (5.0% of revenue) compared to 33.1 million NIS (7.9% of revenue) in the same quarter.
Foot Locker segment: Revenue in the second quarter totaled 158.9 million NIS, compared to 149.5 million NIS in the same quarter last year, an increase of 6.3%. The growth was driven by an increase in e-commerce sales and the closure of stores in the same quarter last year due to Operation Iron Swords.
Operating profit in the segment totaled 9.5 million NIS (6.0% of revenue) compared to 13.7 million NIS (9.1% of revenue) in the same quarter last year. The decrease is mainly due to a decline in same-store sales and the absence of a state grant received last year for damages from the Iron Swords war.
Same-Store Sales (SSS)
In the Nike segment, a 9.5% decrease in same-store sales was recorded, compared to a 21.4% decrease in the same quarter last year and a 17.7% decrease in the first quarter of 2026. In Foot Locker, a 6.3% decrease was recorded, compared to a 3.5% decrease in the same quarter last year.
Tomer Chapnik, CEO of Retailors, stated:
"In the second quarter, we presented a return to profitability compared to the first quarter of the year, despite the challenging operating environment and the continued weakness in sales of the Nike brand worldwide. We continue to work to strengthen Retailors' infrastructure and adapt operations to market conditions, while focusing on store performance. We believe in the strength of the Nike brand and continue to examine new business opportunities to generate long-term value for shareholders."
