Sterling sales boost Truworths shares
Johannesburg - South Africa’s biggest-listed apparel retailer, Truworths International Ltd [JSE:TRU], reported a 16% jump in sales for the first 18 weeks of its financial year on Thursday, lifting its shares.
Truworths, which sells middle and high-end clothing in cash and on credit, said sales totalled R3.3bn in the 18 weeks to end-November, an increase of 16%.
Growth was boosted in part by new stores, which added 7.4% to the company’s trading space. Same store sales were up 10.7%.
Shares in the R45.3bn company rose 4.9% to R99 before easing back to trade up 1.21% at R98.10 at 13:31,.
Helped by decades-low interest rates and a tentative economic recovery, consumer spending is improving but analysts have warned that retailers may be priced for more than what they can deliver.
Retailers have also been boosted by expectations that low-end consumers will continue to benefit from government grants.
Truworths’ shares have surged more than 33% so far this year, mirroring similar or more gains in the sector and far outpacing a 17% rise in the benchmark index.