• SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

  • Zim tastes people power

    Protests in Zimbabwe are forcing Mugabe to face anti-government sentiment, says Memory Mataranyika.

  • Platinum handshake

    Officials who try to do what's right risk far more than blessed wrongdoers, says Solly Moeng.

All data is delayed
Loading...
See More

Truworths Zim sales up but clothing retailers suffer

Mar 09 2016 19:33
Memory Mataranyika

(iStock)

Company Data

TRUWORTHS INTERNATIONAL LIMITED [JSE:TRU]

Last traded 88
Change -1
% Change -1
Cumulative volume 4611520
Market cap 0

Last Updated: 22-07-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Truworths exits Nigeria due to tough regulation

Truworths Zim struggles for sales

Truworths earnings up on UK acquisition

Truworths sales growing

Truworths profit barely grows, outlook tough

Truworths aiming at one stop clothing emporium

 

Harare - Job losses and delayed pay dates in Zimbabwe are worsening trading conditions for credit-based clothing and apparel retailers, with the Zimbabwean unit of Truworths [JSE:TRU] saying on Wednesday that consumer incomes have come under threat.

Truworths Zimbabwe, in which the SA-based Truworths has a 34% stake, on Wednesday said interim profits to the end of the first week of January showed a massive improvement to US$328 000 from $49 000 in the previous comparative year.

Other credit clothing retailers in Zimbabwe include Jet and Edgars, both of which are owned by SA companies.

"The trading and credit environment is expected to deteriorate during the remainder of the 2016 financial period.

“Consumer incomes will come under increased stress levels in an environment characterised by job losses, delayed pay dates and reduced earnings," said Truworths Zimbabwe CEO Bekithemba Ndebele.

The company will now focus on "the management of trade receivables so as to maximise cash-flows" and "ensure improvement and enhancement of the quality of the book".

In the half-year to the first week of January, group merchandise sales were 2.5% higher at $11 029 394. Sales had also surged 6.6% on a comparable basis.

Truworths Zimbabwe said the doubtful debt allowance as a percentage of gross trade receivables had increased to 6.3% against 5.1% in the year earlier period. It further stated that at the end of the period under review, about 78.8% of the group’s account holders “were able to make purchases”.

It has long-term borrowings of $5m which comprise debentures of $2m as well as a bank loan of $3m.

“The debentures are unsecured and bear interest at 12.5%. The bank loan bears interest of 11.5% and is secured by cross company guarantees,” Truworths Zimbabwe said in a note to its financials released on Wednesday.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

truworths  |  retail  |  earnings reports

 
 
 
 

Company Snapshot

We're talking about:

THE SAVINGS ISSUE

Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Sarb's decision to keep the repo rate unchanged is:

Previous results · Suggest a vote

Loading...