THE market continued to punish retailer Mr Price on Thursday, sending the previously highly rated company’s share price 11% lower to R165, after losing 15.96% on Wednesday. Mr Price blamed a disappointing sales update on unseasonally warm weather for a 3.6% drop in comparable sales at its apparel division in the 18 weeks between April 3 and August 6. Mr Price has lost 17.7% so far in 2016, after retreating an annual 14.9% in 2015. Its price-earnings ratio has rerated to 15.8, from 22 at the beginning of August. Analysts do not foresee a recovery soon. "We do not believe operating conditions would improve in the short-term, and would continue to weigh on Mr Price’s sales," said Momentum SP Reid retail analyst Alex Sprules.
His views echoed that of Mr Price’s management on Wednesday, saying that with the soft winter and the weak trading environment over the past 18 weeks, it was unlikely earnings for the half-year to September would exceed those of the previous year. Analysts ex...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.