ANNUAL RESULTS
Truworths feels consumer pressure
CEO Michael Mark blames the group’s domestic performance on weak local consumer spending
Truworths’ share price jumped almost 5% by the close of the JSE on Thursday despite the retailer reporting a contraction in earnings and little growth in full-year profit. In the 53 weeks ended July 2, diluted headline earnings fell 0.8% to 661c. Operating profit increased 1% to R4.2bn from the year-earlier period. Truworths shares closed 4.53% higher at R79.86. CEO Michael Mark said that the group’s domestic performance had been affected by pressure on consumer spending in a recessionary environment, while the affordability assessment regulations had continued to restrict new account growth and limit account sales. Mark said the picture in the group’s UK operations was not any better as the aftermath of the Brexit vote had contributed to volatile trading conditions over the past year. "The retail trading environment locally was also impacted by aggressive and unsustainable pricing," said Mark. This had "created stress in the market and led to increased markdown and promotional acti...
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