Massmart slips back despite strong forecast
bdlive.co.za - Aug 16th 2016, 08:49
MASSMART’s share price was hit by profit-taking on Monday after the retailer released an interim trading statement, in which it said earnings were expected to grow strongly despite a marked slowdown in the local economy.
At the close of trade on the JSE on Monday, the retailer’s share price was 4.25% down at R146.50, valuing the company at about R33bn. Data from financial solutions provider Iress show that the Walmart-owned company had seen five consecutive weeks of strong gains before shareholders sent the stock lower.
Kagiso Asset Management investment analyst Dirk van Vlaanderen said the market had been kept abreast of sales trends in the Massmart business via the annual general meeting in May, as well as the 26-week update provided in July.
In July the company reported comparable sales growth of 6.4% and a total sales increase of 8.7%.
"(The) trading statement gives an indication of the profitability of the business for the first six months of the year — guiding to an increase in underlying profit before interest and tax versus the previous period."
"This suggests that profit before interest and tax margins are either unchanged from a prior-year level of 2.1% or that they have increased slightly. We believe this is a credible outcome given the heightened cost inflation pressure the business currently faces," said Van Vlaanderen.
In the 26 weeks to June 26, Massmart said, profit before interest and tax rose 8.4%-15.9% from R685.2m in the first half of 2015.
Interim headline earnings per share were expected to grow 12.9%-20.7% compared From DFM Publishers (Pty) Ltd
The changing UX and CX landscape
13/09/2019 - 16:16
An exceptional customer experience (CX) builds a foundation of loyalty and trust. Similarly, a positive user experience (UX) encourages brand connections with people wanting to come back for more. And yet, local organisations must learn to embrace these more effectively to differentiate themselves from their competitors.
Footgear gets go-ahead to buy Edcon's footwear brands
13/09/2019 - 09:24
Footgear, the South African retailer of branded and non-branded footwear, on Thursday received the green light to purchase the assets and business associated with Edcon Limited’s Edgars Active and High Key brands.
Ackermans launches A-list Summer collection
12/09/2019 - 11:08
With winter’s icy grip on the country, it's hard to believe that summer is around the corner. The onset of warmer days means that it’s almost time to ditch the winter wardrobe and embrace a lighter, brighter one. However, selecting a summer wardrobe can be a daunting experience, as consumers are spoilt for choice and simply don’t have the time to sift through the top trends - particularly when on a budget.
Online shopping business to shake up retail sector
12/09/2019 - 09:40
Allsale Club is a members-only online shopping business that aims to save consumers money on everything from everyday branded items to luxury items.
UK retailers bristle at demand of no-deal Brexit
10/09/2019 - 14:52
A British demand for supermarkets to prepare for a potentially chaotic no-deal Brexit by stockpiling food is stoking anger in the industry, with bosses saying they should not be blamed if people can't find everything they want on the shelves.