UPBEAT TRADING UPDATE
Dis-Chem turnover fails to move investors
The trading update is largely upbeat, but investor enthusiasm for the JSE’s retail sector has been tempered
Shares in recently listed healthcare retailer Dis-Chem fell 3.7% on Friday after the release of a trading update for the 22 weeks to end January. The trading update was largely upbeat, but investor enthusiasm for the JSE’s retail sector has been tempered in recent months after evidence of trading strain in certain mainstay companies. Still, shares in Woolworths, Clicks and Massmart all finished higher on Friday. Market watchers did point out that Dis-Chem had been trading close to an all time R24.99 high recorded earlier in February. Dis-Chem reported retail turnover up 14.3% to R6.7bn, while group turnover was up 13% to R7.3bn. The company’s Northridge store in Bloemfontein, which was flooded late in 2016, was being rebuilt and would reopen in the second quarter. "Although this had no effect on our comparable turnover number, it did impact both the retail and group turnover numbers by 0,6%," Saltzman said. Direct losses from the Northridge store were fully covered by insurance. Sal...