Truworths expects flat earnings
IOL Business - Jul 16th 2015, 15:19
Truworths International expects diluted headline earnings per share for the 52-week period to end-June to be between 2% and 4% higher than last year.
It says this key metric of a company’s performance will come in at between 580.7 cents and 592.1 cents.
The flat earnings come despite group retail sales increasing by 8.2% to R11.6 billion compared to a 6.8% increase in the previous year.
Retail sales in the second half of the period increased 12%, against the first half increase of 5.2%.
Stripping out the sales recorded by its recently acquired Earthchild and Naartjie businesses, group retail sales for the period gained 7.2% to R11.5 billion.
Second half retail sales increased 9.8% compared to the first half increase of 5.2%.
The fashion retailer said credit sales made up 70% of retail sales, down slightly from 71% last year, although the volume of credit sales gained increasing 10.6% in the second half and 5.4% in the first half.
Like-for-like store retail sales, which strips out benefits from new outlets, gained 4.2% in the second half after decreasing 0.8% in the first half, bringing the full period increase to 1.3%.
Truworths says it grew trading space 7.7%, and product inflation averaged 5.6% for the period.
By 28 June, its receivables book had increased by 10.8% to R5.2 billion relative to the prior period-end. “Management has continued to manage credit risk through applying strategies aimed at ensuring the good health of the book,” it says.
Retailers measure their financial periods by weeks instead of a full year to strip out the anomaly of including an odd day at the end of the period.
Its results are expected to be published on 20 August. From © Independent On-line 2015. All rights reserved.
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