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Johnnesburg - Truworths [JSE:TRU], South Africa's biggest listed clothing retailer, reported an 8% rise in full-year profit on Thursday and warned of increasing bad debts and slowing consumer spending in the year ahead.
Truworths said headline earnings per share (Heps) totalled 570.8 cents in the year to the end of June, compared with 526.7c a year earlier.
Retail sales reached R10bn, gross margin was at 56.6% and the operating margin at 34.5%.
Truworths, (including Young Designers Emporium) are engaged either directly or through agencies, franchises or subsidiaries, in the retailing of fashion apparel and related merchandise.
Group retail sales for the 52-week period ended 30 June 2013 increased by 10.7% to R10.1bn compared to the prior reporting period.
Like-for-like store retail sales grew by 5.7%, while product inflation averaged 2% for the period. Trading space increased by 8.1% over the prior 53-week period-end following the opening of a net 17 Truworths, 19 Identity and 2 Truworths Man stores, while 2 Uzzi stores and 1 YDE store were closed.
The group's store base passed the 600 mark and totalled 604 at the end of the period. This includes 40 stores outside South Africa following the opening of new stores in Lesotho (4), Zambia (3), Ghana (2) and Nigeria (2).
The group has recorded market share gains and based on data from the retail liaison committee (RLC) for June 2013, in South Africa the group increased its ladieswear RLC clothing market share to 21.7%, while its menswear clothing market share grew to 22.6%.
A final dividend of 158 cents per share has been declared, bringing the total dividend for the period to 362c, an increase of 11% over the prior 53-week period.
The group's financial position continued to strengthen, with net asset value per share increasing by 6% to 1 488.5c.
During the period R2.2bn was returned to shareholders through dividend payments and share buy-backs. The group repurchased 7.6 million shares at an average price of R91.08 per share for a total of R691m during the period.
Since the inception of the share buy-back programme in 2002, 89 million shares have been repurchased at a total cost of R2.4bn at an average price of R27.43.
The Board has resolved to appoint David Pfaff CA(SA) as the chief financial officer of the group and as an executive director of the company with effect from September 1 2013.
Predictions are that the economy and consequently the credit environment are unlikely to improve in the 2014 financial period and restrictive credit granting criteria will limit account acquisition and credit sales.
Ongoing weakness in the rand exchange rate against the US dollar will be managed to contain inflationary pressures on merchandise as the group has successfully done in prior periods of currency volatility. Against this challenging trading background the group will aim to build sales growth momentum by delivering high-quality, internationally inspired fashion across the brand portfolio.
Trading space is anticipated to increase by approximately 8% during the 2014 financial period.
Truworths said headline earnings per share (Heps) totalled 570.8 cents in the year to the end of June, compared with 526.7c a year earlier.
Retail sales reached R10bn, gross margin was at 56.6% and the operating margin at 34.5%.
Truworths, (including Young Designers Emporium) are engaged either directly or through agencies, franchises or subsidiaries, in the retailing of fashion apparel and related merchandise.
Group retail sales for the 52-week period ended 30 June 2013 increased by 10.7% to R10.1bn compared to the prior reporting period.
Like-for-like store retail sales grew by 5.7%, while product inflation averaged 2% for the period. Trading space increased by 8.1% over the prior 53-week period-end following the opening of a net 17 Truworths, 19 Identity and 2 Truworths Man stores, while 2 Uzzi stores and 1 YDE store were closed.
The group's store base passed the 600 mark and totalled 604 at the end of the period. This includes 40 stores outside South Africa following the opening of new stores in Lesotho (4), Zambia (3), Ghana (2) and Nigeria (2).
The group has recorded market share gains and based on data from the retail liaison committee (RLC) for June 2013, in South Africa the group increased its ladieswear RLC clothing market share to 21.7%, while its menswear clothing market share grew to 22.6%.
A final dividend of 158 cents per share has been declared, bringing the total dividend for the period to 362c, an increase of 11% over the prior 53-week period.
The group's financial position continued to strengthen, with net asset value per share increasing by 6% to 1 488.5c.
During the period R2.2bn was returned to shareholders through dividend payments and share buy-backs. The group repurchased 7.6 million shares at an average price of R91.08 per share for a total of R691m during the period.
Since the inception of the share buy-back programme in 2002, 89 million shares have been repurchased at a total cost of R2.4bn at an average price of R27.43.
The Board has resolved to appoint David Pfaff CA(SA) as the chief financial officer of the group and as an executive director of the company with effect from September 1 2013.
Predictions are that the economy and consequently the credit environment are unlikely to improve in the 2014 financial period and restrictive credit granting criteria will limit account acquisition and credit sales.
Ongoing weakness in the rand exchange rate against the US dollar will be managed to contain inflationary pressures on merchandise as the group has successfully done in prior periods of currency volatility. Against this challenging trading background the group will aim to build sales growth momentum by delivering high-quality, internationally inspired fashion across the brand portfolio.
Trading space is anticipated to increase by approximately 8% during the 2014 financial period.
