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Cape Town - Investors on Wednesday cheered Mr Price results, sending the share price soaring more than 7% after the clothing retailer for the first time posted sales in access of R20bn.
The shares at one stage changed hands at R198.20, 7.4% higher that the previous close. At 14:52 it was trading at R197.22 (+6.89%) on the JSE.
The clothing retailer announced late on Tuesday an increase in total revenue by 8.4% to R19.6bn, with retail sales increasing by 8% to R18.7bn this despite weak economic conditions.
Mr Price said for the first time sales exceeded R20bn and earnings exceeded 1 000 cents per share, both numbers representing important milestones for the company.
The Group announced increases in diluted headline earnings per share of 17.1% to 1012.9c and dividends per share of 15% to 667c.
CEO Stuart Bird said he was very satisfied with the results, "particularly after considering the headwinds that we confronted in terms of the subdued economy and changes in credit legislation".
The company reported a 9.2% rise in cash sales, while credit growth of 2.3% was inhibited by the introduction of new credit regulations last September.
In the 53 weeks to April 2l Mr Price opened 45 new stores and expanded 26.
Other income, derived mainly from the financial services business MRP Money, increased by 21.5% to R882.3m.
Bird said the company's strong cash generation and healthy balance sheet have easily absorbed the impact of these investments, which are important platforms for expansion.
The consumer environment is expected to remain challenging in the next financial year. A weak exchange rate impacts all apparel retailers and higher product inflation in the first half is expected to impact unit growth.
