Truworths slides following trading update
SHARES in Truworths International fell more than 6% in early trade on Thursday in the wake of the release of its latest trading update.
The fashion retailer said it expected sales in the 18 weeks to November to increase 4.7% to R3.7bn from the year-earlier period, with cash and credit sales lifting 5.4% and 4.5%, respectively.
Gross trade receivables were up 9% to R4.7bn due primarily to transition by account customers to 12-month interest-bearing payment plans.
At 9.35am, the stock was off 6.05% to R69.99, valuing the company at about R29.5bn.
The interim results to December 28 this year are expected on February 29.
The mid-cap company also announced the appointment of Jean-Christophe Garbino as its new CEO, replacing Michael Mark, who has been at the helm for 23 years.
The company said that Mr Mark had decided not to renew his contract‚ which was due to expire in 2015.
Truworths said Mr Garbino was CEO of prominent French fashion retail group Kiabi and had been in its employ since 1992. He was appointed CEO in 2007 after serving as general manager of the group’s Spanish division.
“Kiabi is a fashion retail chain that sells commercially priced fashion apparel to ladies‚ men and children. It employs more than 7‚500 people and delivered revenue of approximately €1.5bn in its most recent reporting period‚” Truworths said in a statement.
The company said Mr Garbino would work closely with Mr Mark for as long as necessary to ensure a smooth transition. It said it envisaged Mr Mark continuing to serve on the board of the company after his retirement as CEO.