INTERIM RESULTS
Rextru takes hit on Queenspark slump
Rex Trueform (Rextru) — the small fashion retailer in which empowerment doyen Marcel Golding and low key investor Hugh Roberts recently emerged as major shareholders – saw its profit margins shredded in the six months to end-December. Interim results released on Friday showed that operating margins at Rextru’s fashion chain Queenspark were worn away to just 1.1% from more than 5% in the corresponding six months in 2015. The margin is markedly lower than larger competitors such as The Foschini Group and Truworths International. Queenspark’s operating profit was down by more than three quarters to just more than R3m, leaving Rextru’s at 23c per share compared with the 65c per share earned in the previous interim period. The dividend was cut by more than half to 27c per share. In commentary accompanying the results, CEO Catherine Radowsky said retail consumer confidence and spending continued to be adversely affected by a sluggish economy, an increase in living costs and regulatory cha...
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