SHARES in cheap-chic retailer Mr Price rose as much as 3.51% on Thursday after the group said it expected earnings to increase as much as 24%.
The value retailer, whose budget-conscious offerings continue to appeal to shoppers, is bucking the broader retail trend of slower growth and stealing market share from higher-priced players such as Edgars and Truworths as high levels of consumer debt and rising living costs crimp spending.
For the 26 weeks ended September 27, Mr Price expects basic, headline, diluted basic and diluted headline earnings per share to increase between 20% and 24%. At 4:30pm the group’s shares were trading at R216.08 from Wednesday’s close of R208.75.
“In this kind of environment that’s nothing short of phenomenal,” Absa Investments analyst Chris Gilmour said. “Mr Price has got a very clever strategy into the rest of Africa and it has a remarkably high degree of recognition on the rest of the continent that you wouldn’t ordinarily expect.
“Also, I think we may well already be seeing some impact of their online business.”