Fox Group Reports 75.5% Net Profit Surge in Q2 Despite Retailors' Weakness

Fox Group, led by controlling shareholder Harel Wizel, posted a strong financial performance in the second quarter of 2026, driven mainly by its fashion, home fashion, and Terminal X e-commerce operations. The group recorded a 12.8% increase in revenues, reaching a record 1.8 billion shekels. Operating profit grew by approximately 30% to 223 million shekels, while net profit soared 75.5% to 123 million shekels. The company declared a dividend payout of 150 million shekels.

The fashion and home fashion sectors were the primary contributors to the positive results, with revenues rising 15.3% to 570 million shekels. However, same-store sales growth was modest at 2.6%, including online sales. Terminal X saw a 20.5% increase in sales to 161 million shekels, benefiting from both organic growth and acquisitions. Other sectors, including brands such as Shilav, Saks, Flying Tiger, San Glass, and Jumbo, also contributed, with revenues up 37.6% to 434 million shekels.

Conversely, Retailors, which operates the Nike brand among others, continued to drag on the group, with sales declining 1.3% to 594.4 million shekels and same-store sales falling 8.6%. Wizel noted ongoing challenges in Canada, where eight Fox Home stores were closed and converted to Flying Tiger outlets. He described cautious expansion plans for Nike stores due to global difficulties faced by the brand.

Regarding Jumbo, which recently shifted its strategy from large 10,000-square-meter stores to smaller 1,200-square-meter outlets, Wizel acknowledged past mistakes and expressed confidence in the new CEO, Dudi Cohen. He highlighted supply chain improvements, including direct shipments from China to Israel, aimed at reducing costs and boosting profitability over the next two to three years.

Finally, the group appointed Oren Brent as its first Chief Data Officer to lead data, analytics, and AI initiatives to enhance operational efficiency. Wizel emphasized prudence in dividend distribution given political uncertainties ahead of elections, preferring to retain cash reserves while distributing a moderate dividend this year.