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Johannesburg - Clothing, footwear and textiles retailer, Edcon reported improved results for the quarter ended July 2, continuing its growth trajectory.
The group said total retail sales rose 7.3%, with comparable same-store sales up 6.0%, despite challenges in the South African economy. Credit sales for the quarter contributed 52% of total sales, up from 50% for the same quarter in 2010.
"We are pleased with the progress made during the quarter. Growth was achieved in spite of maintaining relatively conservative credit-granting policies. The debtors' book continues to be tightly managed and I'm pleased to report that all our credit criteria improved over the period," said Edcon CEO Jurgen Schreiber.
Schreiber added that the company had embarked on a review of merchandise ranges and the flow of goods as well as an analysis of operational processes.
"We expect the benefits from these projects to crystallise later in the financial year," he said. Edcon's department store division, which includes Edgars, Boardmans and Red Square increased retail sales by 7.8%, largely due to strong sales in ladieswear, footwear and cellular.
CNA's retail sales grew 3.2%, while the discount division, which includes Jet, Jet Mart, Jet Shoes, Legit and Discom increased retail sales by 7.6%, chiefly through sales growth in childrenswear, ladieswear and cellular.
Gross profit margin was down 0.3% compared with the same period last year, due to input price inflation and disproportionate growth in lower margin cellular sales.
Credit and financial services operating profit increased by 39.6%.
During the quarter, Edcon issued R1bn in bonds, listed on the JSE, it also repurchased 39 million worth of euro bonds listed on the Irish Stock Exchange.
"These transactions complete the refinancing of the short term hedging liabilities that arose from the original hedging structure implemented in 2007," it said.
The group said it believed conditions in the South African economy were favourable for the retail sector and it was confident that the business would deliver its growth plan in the months ahead.
The group said total retail sales rose 7.3%, with comparable same-store sales up 6.0%, despite challenges in the South African economy. Credit sales for the quarter contributed 52% of total sales, up from 50% for the same quarter in 2010.
"We are pleased with the progress made during the quarter. Growth was achieved in spite of maintaining relatively conservative credit-granting policies. The debtors' book continues to be tightly managed and I'm pleased to report that all our credit criteria improved over the period," said Edcon CEO Jurgen Schreiber.
Schreiber added that the company had embarked on a review of merchandise ranges and the flow of goods as well as an analysis of operational processes.
"We expect the benefits from these projects to crystallise later in the financial year," he said. Edcon's department store division, which includes Edgars, Boardmans and Red Square increased retail sales by 7.8%, largely due to strong sales in ladieswear, footwear and cellular.
CNA's retail sales grew 3.2%, while the discount division, which includes Jet, Jet Mart, Jet Shoes, Legit and Discom increased retail sales by 7.6%, chiefly through sales growth in childrenswear, ladieswear and cellular.
Gross profit margin was down 0.3% compared with the same period last year, due to input price inflation and disproportionate growth in lower margin cellular sales.
Credit and financial services operating profit increased by 39.6%.
During the quarter, Edcon issued R1bn in bonds, listed on the JSE, it also repurchased 39 million worth of euro bonds listed on the Irish Stock Exchange.
"These transactions complete the refinancing of the short term hedging liabilities that arose from the original hedging structure implemented in 2007," it said.
The group said it believed conditions in the South African economy were favourable for the retail sector and it was confident that the business would deliver its growth plan in the months ahead.
