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Friday full-year profit likely rose as much as 22%
Friday full-year profit likely rose as much as 22%

Truworths expects higher profit


Fin24 - Jul 18th 2011, 11:40

Johannesburg - South Africa’s biggest listed clothing retailer Truworths International said on Friday full-year profit likely rose as much as 22%, beating consensus estimates as lower interest rates boost consumer spending. 

Truworths said headline earnings per share (Heps) likely increased by between 18% and 22% in the 52 weeks to June 26. A Thomson Reuters poll of 10 analysts expects the company to post a 19.7% rise in Heps.

Shares in the company rose 1.06% to R73.27 in midday trade, outpacing a flat JSE Top 40 blue chip index .

Consumer demand is recovering in South Africa after a contraction in 2009, helped by 650 basis points of interest rates cuts since 2008 that left borrowing costs at historic lows, but analysts and fund managers have said the recovery has not been enough to justify high valuation multiples.

Truworths said sales increased 13.5% to R8.1bn, with same-store sales increasing 8.9% on product inflation of around 4%. 

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