JOHANNESBURG: Truworths reported a 7.3% decline in diluted headline earnings per share for the 52-week period ending on 1 July.
The company’s sales fell by 2.7% to R18 billion. The fashion retailer says the weak economy, increasing levels of unemployment and the ever-rising cost of living explains the results.
Political uncertainty in the UK relating to Brexit negotiations is also negatively affecting the brands it operates there.
The company declared a dividend of R1.59 per share, down from R1.82 in 2017. Speaking to a Johannesburg-based Talk Radio, Truworths CEO, Michael Mark said, “It’s been tough for at least two years now. You know the reasons…No, it [product mix] isn’t [the problem]… Retailers are battling at the mainstream end of the market… There is a lot of science behind it.”
“Truworths has always been very cash generative, we’ve always tried to always have very low debt. We are pleased that our debt has dropped. There are a lot of young, poorer customers who can’t open an account… putting in a lay buy offering adds 2% to sales,” he added.