Registered users can save articles to their personal articles list. Login here or sign up here
 Registered users can save articles to their personal articles list. Login here or sign up here

Massmart shares slide after sales update

Shares down 5% at R93.04.

JOHANNESBURG – Shares in South Africa’s Massmart fell more than six percent on Thursday after a trading update showed full-year sales fell short of analyst expectations.

The Walmart-controlled retailer said sales for the year to the end of December rose 8.4% to R84.7 billion ($5 billion). That was below than an average forecast for 9.2% growth in a survey of 11 analysts.

“Massmart sales growth slowed down a lot due to consumers being under pressure,” said retail analyst Syd Vianello.

Retailers in Africa’s most advanced economy are struggling to boost sales growth as shoppers battle high personal debt levels and rising energy prices due to local currency weakness.

In the first half of 2015, Massmart sales rose 9.1% to R38.9 billion.

By 1152 GMT, Massmart shares were down 5% at R93.04 after earlier touching a low of R91.50.

Its shares have shed 38% over the last year compared to the 1.5% decline of Johannesburg’s All-Share over the same period.

The parent company to Game, Makro and Massbuild is due to publish its interim results on February 25. 

   No comments so far

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up here

Latest Currencies

ZAR / USD
ZAR / GBP
ZAR / Euro

SEARCH CLICK A COMPANY
Enter company name or share code:

Podcasts

Moneyweb Investor Issue 19

Despite the best efforts of some politicians, South Africans carry on regardless. Nowhere is this more evident than at Yoco, a young, promising and innovative start-up. Read about it in this month’s issue of The Moneyweb Investor.