ANNUAL RESULTS
Truworths warns of dip in profit, as weak economy and tough competition bite
Full-year earnings and sales will fall, with consumers under pressure, and foreign entrants such as H&M and Zara stealing market share
Fashion retailer Truworths says it expects full-year profit to fall by 1% to 3%. Although the outlook for retail sales remains favourable, consumer spending is expected to be somewhat contained as household incomes remain under pressure due to high levels of consumer indebtedness, the poor job market, higher taxes, and increasing food and fuel prices. Truworths said on Friday diluted headline earnings per share for the 52-week period ended July 1 were expected to be between 601c and 615c per share, compared with 621c from the comparable 52-week period the year before. The retailer’s results will be released on or about August 16. Group retail sales decreased by 2.7% from R18.5bn to R18.0bn. The company, headed by long-serving CEO Michael Mark, owns brands like Identity, YDE and Uzzi. At its flagship Truworths chain, sales increased by 0.8% relative to the comparable prior period, with cash sales increasing by 2.6%. Relative to the 53-week prior period, Truworths’ retail sales decrea...
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