Clothing retailer Truworths said its trading results for the second half of the year were expected to be worse than the first half's, which benefited from an additional week's trade.
The company's interim results to December 31 showed revenue up 23% to R3,3bn from R2,7bn. Headline earnings per share were up 26% to 159,9c from 125,6c.
Like for like, sales growth was 11%, 7% of which occurred in the first 26 weeks. The company experienced internal inflation of about 6%. The first seven weeks of the second half saw sales grow 16% compared with the same period last year.
CEO Michael Mark said the rate of new store openings was likely to be slower than previously. Of the new stores opened, 21 were Truworths, 20 Identity, two YDE and nine were Uzzi stores.
The retailer closed four Truworths stores. Trading space increased 11% compared with December 24 last year.
Truworths' recent trading statement indicated basic and headline earnings per share for the 27 weeks were expected to be 20%-30% higher than the 26-week corresponding first half.
The company said the trading environment had been “challenging” thanks to a rise in the cost of living and higher interest rates. In addition, the National Credit Act had slowed new credit extension.
The debtors' book increased 24% during the period, with the number of active accounts increasing from 1,5 million to 1,8 million. However, debt write offs as a percentage of the debtors' book grew from 6,6% to 9,6% while the doubtful debt allowance as a percentage of the book grew from 7,1% to 9,8%.
Mark said increases in the group's net bad debts and doubtful debt allowances were at the upper end of management expectations.
Source: Business Day
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