Edcon Holdings returned to profit in the second quarter after debt repayment costs eased following the exit of US private equity firm Bain Capital, while South Africa’s biggest clothing retailer cleared unwanted stock to boost sales over the busy festive period. Net income for the three months to end-September was R163m, the Johannesburg-based owner of the Edgars and Jet chains said in an e-mailed statement on Tuesday. That compares with a R2.1bn loss a year earlier. Cash sales increased 0.8%, although a slump in purchases on credit meant total revenue declined 6.8%. "Within each of the Edgars, Jet and Specialty divisions, there is significant momentum under way of internal change," CEO Bernie Brookes said. "While we still have some way to go, progress is pleasing." Under Brookes, Edcon is battling to turn around the business after Bain’s exit in September eased the debt burden from the US firm’s 2007 takeover to R6bn from R26.7bn. The company needs to boost sales and profit at the ...
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