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Johannesburg - Massmart [JSE:MSM] forecast a sharp decline in half-year profit on Wednesday, hurt by unfavourable currency moves, putting its shares on course for their biggest one-day slump in more than 15 years.
Massmart, controlled by US retail giant WalMart Stores, said headline earnings were expected to fall by between 22.4% and 29.8%, or in a range of 117.8 cents and 130.2c per share, in the 26 weeks to June 28.
Headline EPS is the main profit measure in South Africa and strips out certain one-off items.
South Africa's fifth biggest retailer value, which imports most of its electronic products, has been struggling as the weakness of the rand currency, which hit a record low last week, pushes up the cost of imported products.
Excluding the impact of currencies, headline EPS would have fallen by at least 9%, Massmart said.
The company's problems also reflects an industry-wide slump as consumers battle job losses, high personal debt levels and rising interest rates.
Shares in the high-volume, low-margin retailer fell more than 10%, on course for their biggest daily percentage slump since early 2001.
Rival Shoprite Holdings [JSE:SHP], met estimates with an 11% rise in full-year profit on Tuesday, citing market share gains from competitors.
