Truworths sales growth improves on year-earlier period

Truworths reported double-digit sales growth for the year to end-June, boosted by the acquisitions of the Office Group, Earthchild and Naartjie.

By Colleen Goko

18 Jul 2016

Picture: Michael Ettershank

In a trading update released on Friday, the retailer said it had increased group sales for the period 46.1% to R17bn compared to an 8.2% increase in the year-earlier period. Excluding the sales of the new businesses, retail sales increased 11.2% to R12.8bn.

Truworths entities include Truworths, Identity, Uzzi, Daniel Hechter, Inwear and YDE. The company trades mainly in SA, Namibia, Swaziland and the UK. In the first half of its financial year the retailer acquired UK-based Office Group, which operates in Ireland and Germany as well. Office had 162 stores. Before the transaction, Truworths had 767 stores in Africa with 44 outside of SA’s borders.

In the period under review, the company said credit sales with the inclusion of the acquired businesses comprised 53% of retail sales. "The reason for the material changes in the credit-cash metrics is that Office generates solely cash sales," Truworths said.

Excluding the acquired businesses, credit sales comprised 70% of retail sales for the period.

Like-for-like store retail sales increased 7.3%. Trading space increased 3.8% and product inflation averaged 9.5% for the period.

The group’s credit book increased 11.7% to R5.8bn compared with the year-earlier period.

Source: Business Day

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za