Better, off a low base
NEWS ANALYSIS: Mr Price — talk about an apparent comeback
Analysts sceptical of the rebound cite lack of consumer spending power and increased competition as problems
Mr Price — which not so long ago fell off its pedestal — came bounding back in its half year to September 30 to deliver the strong profit recovery promised by management. The improvement in Mr Price’s latest half-year was impressive: headline EPS (HEPS) coming in 22.2% up and the interim dividend hoisted by 23.6%.Miladys, which has just emerged from a market repositioning, put up an even stronger showing to lift sales 11.9% to R652m and same-store sales by 11.8%. The apparel division, underpinned by good volume growth, also achieved a solid recovery in its operating margin which lifted from 12.3% to 16.1%. Overall, the division contributed an operating profit of R1.1bn, 68% of the group total compared with 58% in the previous year. It was an excellent showing in a sector where Stats SA reported clothing and footwear sales growth averaging a mere 0.6%/month in the six months to August in constant money terms. At current prices, growth was 4%. "Well executed, our fashion value [everyd...
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