Home / Knowledge / News / Fashion / Fashion retailer Truworths operating profit up 27%
Fashion retailer Truworths operating profit up 27%
25
Jul '08
Truworths International Ltd released the financial results for 2008. In a challenging trading environment over 27 weeks, group sale of merchandise increased to R3 018 million (R2 901 million excluding week 27). This was 20% more than in the prior period(15% excluding week 27).

- Merchandise sales up 20%
- Operating profit up 27%
- Headline earnings per share up 26%
- Interim dividend up 20%
- Group results

The buoyant retail trading conditions of recent years slowed during the period as a result of the seven interest rate increases totalling 350 basis points over the last 18 months and a general rise in the cost of living most evidently reflected by food price inflation and an increasing fuel price. The introduction of the National Credit Act in June 2007 served to slow new credit extension and credit line increases, dampening consumer demand.

Based on a corporate tax rate of 29%, headline and basic earnings per share of 159.9 cents(149.8 cents excluding week 27) equate to a 26% increase (18% excluding week 27) compared to the prior period's 126.5 cents; this is in line with indications in the Group's trading statement on SENS on 18 January 2008. An interim cash dividend of 72 cents a share has been declared, 20% more than that declared in respect of the prior period.

Sales growth included comparable store sales growth of 11% (7% excluding week 27), with product inflation of approximately 6%. Trading space increased by 11% relative to the position at 24 December 2006 through the opening of 21 Truworths, 20 Identity, two YDE and nine Uzzi stores and the closure of four Truworths stores.

Outlook
Group retail sales of merchandise for the first seven weeks of the second half of the current financial period reflect growth of 16% on the prior comparable period. The retail environment is likely to be a tough one over the forthcoming months.

Nonetheless, management anticipates that trading activity in the period to June 2008 is likely to yield satisfactory real earnings growth, as the Group has consistently achieved for many years, albeit at a lower level than was achieved in the 2007 period.

Truworths is a leading fashion retailer operating two-hundred-and-fifty-seven stores in South Africa.

Truworths International Ltd


Must ReadView All

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search