Advertise with

Clicks sees earnings rise on resilient markets
Clicks sees earnings rise on resilient markets

Clicks sees earnings rise on resilient markets


Fin24 - Apr 22nd 2016, 09:16

Johannesburg - Clicks [JSE:CLS] forecast higher earnings this year, citing expectations that demand for its products will remain resilient despite a weakening outlook for consumer spending. 

Diluted earnings per share, excluding one-time items, will rise 10% to 15% in the year through August, the Cape Town-based company said in a statement on Thursday (21 April). That compares with a 14% earnings increase reported in 2015.

Profit by the same measure gained 15% to R2.04 in the six months through February, while revenue increased 13% to R12.7bn.

Retailers are facing headwinds including weak domestic consumer confidence, rising interest rates and a depreciated rand, which remains 15% weaker relative to the dollar compared with a year ago.

The Reserve Bank forecasts economic growth of 0.8% for South Africa this year, which would be the slowest pace since the 2009 recession.

“The core health and beauty markets in which the group trades are relatively resilient to economic downturns,” the company said. “Clicks also has considerable scope to expand its store and pharmacy footprint in South Africa.”

Clicks expects selling price inflation of 4% to 5% in the financial year, with an “increasingly challenging” consumer spending environment in the six months through August. The company forecast a record R455m of capital expenditure for the financial year.From 

Related News

SA "Black Friday" sales expected to rise 30% year-on-year
18/10/2019 - 12:50
South African businesses have begun preparing for what looks to be another bumper Black Friday trading day, with sales predicted to be up 30 percent from last year, online largest payment service provider PayGate said.

Pick n Pay unveils its revamped "On Nicol" flagship store
18/10/2019 - 10:59
Pick n Pay’s flagship store On Nicol officially welcomed customers after a comprehensive revamp. The refurbished store has an exciting array of new offerings with the very best in retail concepts developed in South Africa and from around the world. Customers can expect an enhanced fresh food experience, a huge focus on product quality, a much-improved range, innovative third-party services, and refreshed customer service.

Consumers are pushing transformation in the retail industry
18/10/2019 - 10:54
Hearing from some of the best speakers in the retail industry, 480 minutes of thought-provoking and relevant insights, amazing networking opportunities and the exchange of ideas. The realisation that the retail sector is rapidly changing and to survive and ensure sustainability, businesses need to evolve – it is no longer a ‘nice to have’ – it’s a necessity – this was the 2019 SACSC Congress.

Marks & Spencer targets new store concept in bid to drive growth
18/10/2019 - 10:18
For a taste of CEO Steve Rowe’s ambitions to transform Marks & Spencer Group (M&S), look no further than its newly refurbished shop in London’s Clapham neighbourhood.

Retail sales up 1.1% in August
18/10/2019 - 09:28
Measured in real terms, retail sales increased by 1.1% year-on-year in August, following a 2% jump in July, figures released on Wednesday by Statistics South Africa showed.