Mr Price's earnings up 22% to 283.6c

Mr Price has seen sales and profits grow in the first six months of this year. Image: Woodland Boulevard

Retail sales for the 26 weeks to September increased by 14.6% to R6.9bn‚ while sales in like-for-like locations (comparable sales) were up by 9.6%.

For the five months to August‚ as reported by Statistics SA‚ total retail sales growth was 7.3% and retailers in textiles clothing and footwear sector improved by 10.6%.

"We focused on avoiding credit sales to drive top-line growth and are pleased that cash sales growth of 15.1% exceeded credit sales growth of 11.6%. We have been loyal to our cash model and 79.2% of total sales were cash‚" said chief executive Stuart Bird.

"Despite tapping-off on credit‚ our largest chain‚ Mr Price apparel‚ which represents 55.5% of group sales‚ achieved strong market share gains‚ which is proof that our merchandise offer hit the mark‚" said Bird.

He said profit from operating activities increased by 22.8% to R1.01bn adding that for the first time‚ profit exceeded R1bn at the interim stage. The operating margin improved from 13.7% to 14.7% of retail sales.

The dividend per share has increased at a rate higher than earnings growth and was up by 26.3% from 133c a year ago to 168c.

The group said that the weak South African currency‚ which affects all retailers‚ resulted in retail selling price inflation increasing by 8.3%. The number of units sold increased by 5.8% to 97.5m.

Mr Price plans to open 43 stores in the second half of the year and expects retail selling price inflation to be above 10% as a consequence of currency exchange rates.