Shares in Truworths fall after disappointing sales report
Truworths’ share price fell 5% to R73.22 on Thursday morning after it said retail sales had declined 3% to R5.5bn during the first 17 weeks of its financial year compared with the matching period in 2016. The clothing chain said this was partly because it reported in weeks, and the decline would have been only 2% if the previous 53 week financial year had not shifted the comparative periods by a week. Truworths said half of its total sales were "account" and half were cash. Both declined by 3%. The group’s trade receivables book decreased by 4% relative to the previous period to R5.6bn. The percentage of active account holders able to purchase improved to 85% compared with 83% in the prior period. At its flagship Truworths chain, account sales comprised 69% of total sales. Sales at Truworths stores declined 2% to R4bn despite its trading space growing 3% from the matching period. Clothes on average were 1% cheaper than in the matching period in 2016, according to the update. The gro...
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