Mr Price declines on ‘poor fashion calls’
Johannesburg – Mr Price Group shares fell the most in almost three years after the 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 8.7% lower at R217.88 as of 14:52 on the JSE.
The shares are 7.5% lower this year, valuing the company at R58bn.
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.”From Fin24.com