Golf Group Reports Sharp Profit Growth in Q2 2026 Fueled by Weaker Dollar and Cost Cuts
Golf Group concluded the second quarter of 2026 with a moderate 3.1% increase in sales, reaching 229 million shekels, partly driven by the opening of 26 new stores. The company benefited from the "Im K'Levia" campaign, which had negatively impacted sales in the same quarter last year due to store closures during the conflict. However, the timing of Passover sales shifted, with this year’s holiday falling earlier, causing some sales to be recorded in Q1 instead of Q2.
Despite the sales growth, the key retail performance metric, revenue per square meter in identical stores, declined by 1.3% to 1,268 shekels. This drop was mainly due to a 9.2% decrease in the home fashion segment, which includes Golf & Co, Golf Kids, Kitan, and Sabon, where revenue per square meter fell to 1,100 shekels. Conversely, the apparel segment, comprising Golf, Intima, and Polgat, saw an 8% increase in revenue per square meter to 1,382 shekels. Apparel sales rose 10% to 111 million shekels, and operating profit doubled to 19.3 million shekels. Meanwhile, home fashion sales declined by 2.3% to 118 million shekels, with operating profit halving to 6.5 million shekels. Sabon’s contribution was included in this segment following its acquisition earlier in the year.
Gross profit increased by 6.3% to 148.5 million shekels, with the gross margin improving to 65% from 62.9% a year earlier. This margin expansion reflected lower purchasing costs due to the weaker US dollar, as Golf sources most products from China in dollars but sells in shekels. Operating profit rose by 3 million shekels to 26 million shekels, aided by a 2 million shekel reduction in advertising expenses. The operating margin improved to 11.3% from 10.3% in Q2 2025.
Net profit nearly tripled to 15.6 million shekels, a 179% increase compared to the previous year’s 5.6 million shekels. This surge was mainly due to a nearly 50% cut in financing expenses, which fell to 8.8 million shekels from 16.9 million shekels, attributed to lower foreign exchange hedging costs amid the dollar’s depreciation. Golf also announced a dividend distribution of 15 million shekels following the strong quarter.
