Massmart sees lower earnings, shares plunge
Fin24

Massmart sees lower earnings, shares plunge

2014-08-20 11:33

Johannesburg - Massmart Holdings [JSE:MSM], the South African unit of Wal-Mart Stores, said on Tuesday its first-half earnings fell as much as 29%, sending the retailer's shares almost 7% lower.

Massmart said in a statement it expected headline earnings of between 159.4 cents and 178c per share for the 26 weeks to June 29, compared with 225.2c a year earlier.

Headline earnings per share (Heps), the main measure of profit in SA, excludes certain one-time items.

The decline highlights the squeeze felt by cash-strapped consumers, who are struggling with the rising cost of living.

Larger rival Shoprite has also been hit by low consumer spending. On Tuesday it reported its slowest profit growth in 15 years for the year to June.

In morning trade on Wednesday, Massmart's shares fell 6.7% to R136.80.

Comments
  • roosboom - 2014-08-20 11:48

    Sign of the times. Expect more of the same bad news in the months and maybe years ahead. We have a leadership devoid of any ideas about how a country's economics works and more importantly, what to do to stimulate economic growth. That I am afraid, it the bottom line with all communists/socialists.

      Eric Moneyvalu - 2014-08-20 11:57

      This is what ETolls and higher fuel prices does. It pushes up food prices and drops spending.

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