Mr Price retailer credits Easter, timely winter season for quarterly sales bump

Source: Reuters/Siphiwe Sibeko

Mr Price, which also sells furniture and homeware, said group sales grew to R9bn ($513m) in the three months to June 28 compared to the same quarter last year.

The group recorded strong sales growth in April and May of 11.3% and 11.9%, respectively, due to the shift of Easter holidays into April and a timely winter season, with cold temperatures starting in late April, sooner than last year.

This boosted demand for warm clothing and shoes in the first two months of the quarter.

However, sales in June decreased by 5.1%, tracking declines across the market, prompting higher mark-downs in a highly promotional sector and reducing first-quarter gross profit margin by 20 basis points, Mr Price said.

"The group exited the winter season clean and is comfortable with its closing stock position," the budget retailer said.

Its clothing sales grew by 6%, while the homeware division increased sales by 6.4%. The telecoms segment continued its double-digit sales growth, increasing by 12.7%.

Mr Price said it has gained more than R300m in market share from competitors over the last 12 months, "highlighting the effectiveness of its differentiated fashion-value offering."