Truworths’ share price tumbled 7% to R66.21 on Thursday morning after it said sales in its first 18 trading weeks declined by 1% to R4.4bn, excluding its acquisition of UK shoe chain Office. Including its UK acquisition, which was completed on December 4, sales jumped by 39% to R6.2bn from the matching 18 weeks in 2015. Excluding new stores and the UK chain, sales fell by 5% while clothes price inflation was 16%. Combined with Office, Truworths showed strong progress in moving from credit to cash sales. Its overall credit sales fell to 49% from 69% while cash sales jumped 130%. But excluding its UK acquisition, credit sales remained at about 70%, causing the group’s trade receivables book to increase by 6% to R5.7bn. In its traditional home market, credit and cash sales both declined by 1%. In the matching period in 2015, cash sales grew by 14% while credit sales grew by 16%. Office recorded retail sales for the period of £97.3m (about R1.8bn), up by 1.4% relative to the prior perio...
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