Mr Price declines as poor fashion choices hurt clothing sales

Total sales up 9%.
Mr Price Group shares fell the most in almost three years after the South African clothing and household-goods retailer said low levels of consumer confidence, “some poor fashion calls” and a relatively late winter curbed sales.

The stock dropped as much as 10%, the biggest intraday decline since September 2012, and traded 13.25% lower at R207.01 at the close in Johannesburg. The shares are 7.5% lower this year, valuing the company at R58 billion ($4.3 billion).

Mr Price

South African consumer confidence dropped to a 14-year low in the second quarter of this year as unemployment of 25%, power cuts and rising fuel prices put pressure on shoppers.

Total sales rose 9% in the 21 weeks through August 22, with same-store sales advancing 4.6%, the Durban-based company said in a statement on Tuesday. Revenue gained 16% in the comparable period a year ago. “Disappointing sales growth for April and May” hurt overall performance, Mr Price said.

“Opportunities in the current trading period were lost in the mens’ and ladies’ junior businesses,” the retailer said. “Despite this, good growth was achieved in most other parts of the business.”

©2015 Bloomberg News

COMMENTS   2

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

One of the absolute benefits of this company is the fact that almost 80% of sales are for cash/card so bad debts are not a factor. I always like to compare this company to an Edgars – I am glad I am not invested in Edgars but exceedingly happy that I am invested in Mr Price

Yes, MPC is the leader among retail companies. At R180 I will consider buying it again. I will buy the shares when it is “on sale”, on an “old-season” discount of 30%. I am not fashion-conscious.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: