Holdsport delivers strong half-year
Johannesburg - Holdsport (HSP), which runs the Sportsmans Warehouse
and Outdoor Warehouse stores, on Tuesday said headline earnings per share
increased by 30.4% per share to 141.7 cents for the half-year ended August 31.
Core headline earnings per share increased by 22.3% to 159.2c.
A maiden interim dividend of 47.0c/share has been declared, in line
with the group's dividend policy.
Operating profit increased by 8.7% to R89.8m and total sales rose
by 7.2% to R546.9m.
The group's operating profit margin for the period increased from 16.2% to
16.4%, while retail sales went up by 6.5% to R523.7m.
The company listed on the JSE's main board on July 18 in the Apparel Retail
sector, to facilitate the exit of majority shareholder Ethos Private Equity,
which bought its stake in the group in 2006 for R681m.
Catering to outdoor and sports enthusiasts, Holdsport's history dates back to
1986 when the first Sportmans Warehouse was opened in Rondebosch in the Western
Its stores are located mostly in value centres in recognised retail nodes in
prime locations throughout the country.
During the period under review, the Sportsmans Warehouse division opened one
new store in Pietermaritzburg and relocated a store in Pretoria, and is now
trading out of 33 stores.
Sales grew by 6.1% to R392.1m and store sales increased by 5.1%.
The Outdoor Warehouse division meanwhile opened one new store in
Vanderbijlpark and is now trading out of 18 stores. Sales grew by 7.7% to
R131.6m, while same store sales increased by 4.8%.
First Ascent SA, in which the company has a strategic investment, achieved
R23.2m of external sales, a 28.1% growth from the previous period. The
brand continued to gain in popularity and was extending its product range
successfully, Holdsport said.
"We have signed lease agreements for a further two new stores to be opened
in the next financial year, and are evaluating other opportunities. The
weighted trading space for the full financial year is expected to increase by
3% on the previous year," the group said.
Looking ahead, it said that while continued unemployment in the economy and
general economic volatility remained a potential risk, it was cautiously
optimistic regarding trading in the second half of the year.
"As always, the second half is heavily dependent on Christmas trading,
which will largely determine the performance of the group in this period,"