Steinhoff's Star share price falls 7% on lacklustre Christmas sales
By Robert Laing - Feb 9th 2018, 13:34
The share price of Steinhoff Africa Retail (Star) fell 7% to R20.19 on Friday after it reported lacklustre Christmas sales.
Excluding new stores, its flagship chains Pep and Ackermans grew sales just 1.9% in the December quarter from the matching three months in 2016.
Star said the flat revenue growth was due to deflation caused by a stronger rand making imports cheaper.
Acquisitions, including Building Supply Group (BSG), helped its overall revenue grow 15.5% to R18.4bn during the December quarter. Excluding BSG and new stores, the quarter’s revenue grew 8.5%, Star said in the sales update, which did not provide rand values for its different divisions, only percentage changes.
Tekkie Town and other chains in its adult apparel division were Star’s best performers, growing sales 19.9%.
Its furniture, consumer electronics and appliances brands — which include HiFi Corporation and Incredible Connection — grew sales 12.1%.
Its hardware stores — which include Timbercity and The Tile House — grew sales 5.1%. However, excluding BSG, its hardware stores suffered a 3.4% decline in sales.
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