Consumer brands giant AVI, which performed commendably in the half-year to end-December, is determined to reboot its footwear division. Results released on Monday showed that after the close of the interim period AVI had given the management team of its top-performing Spitz division direct oversight on the underperforming Green Cross operations. While Spitz hiked operating profit 15% to R335m, Green Cross experienced a drop in operating profit to R4.2m, from R19m in the corresponding interim period in 2017. AVI, which acquired Green Cross for R382.5m in 2012, said the poor performance was due mainly to the poor performance of the summer 2017 range. AVI CEO Simon Crutchley said costs at Green Cross were well controlled, but not enough to offset the fall in gross profit margin. The change in reporting lines for critical activities in Green Cross would yield material improvements in merchandise planning, stock turnover and retail trading densities in the next 12 months. Green Cross wou...
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