Picture: SUPPLIED
Picture: SUPPLIED

Retailer Mr Price has warned that first-half profits will fall by a fifth as Covid-19 batters the economy and eats into consumers’ income, but says it has gained market share.

The group expects headline earnings per share for its six months to September 26 to fall at least 20%, and has warned that it expects consumers’ disposable income to fall even further as unemployment rises and savings are depleted.

“Despite this, performance exceeded internal expectations and the group has gained market share for four months in a row to June 2020,” the latest period for which Retailers’ Liaison Committee data is available.

“This is a strong signal that its everyday, low price and fashion-value model has enabled customers to find value despite the extremely challenging economic environment,” the group’s trading update said.

In morning trade on Thursday, the Mr Price share prices was down 4.67% to R125.19, on track for its worst day in more than three months.

Update:August 20 2020
This article has been updated with additional financial information.

gernetzkyk@businesslive.co.za

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