Truworths' profit falls after big discounts and weaker Africa sales

Upmarket fashion retailer Truworths recently reported an 8% decline in full-year profit, citing the impact of big discounts that followed delayed deliveries of winter stock.

Source: Reuters/Esa Alexander

Headline earnings per share, the main profit measure in South Africa, fell to 752.1 cents for the year ended 30 June from 817.9 cents the previous year.

"Late deliveries of winter merchandise in the prior period due to port congestion and global shipping disruptions, combined with the delayed onset of winter in 2024, dampened seasonal demand," Truworths said in a statement.

It said, it had had to increase "in-season promotional activity" to manage inventory levels.

Group trading profit decreased by 31.4% to R2.9bn while the gross profit margin decreased to 53.1% from 52.3%.

Group sales increased by 2.7% to R22bn with growth hindered by Truworths Africa, the group's biggest business that reported a sales decline of 0.4% to R14.5bn.

The group's UK-based shoe retailer Office, however, reported sales growth of 9.7% to R7.5bn.

Truworths declared a final cash dividend of 170 cents per share, a 13% drop from last year.