South African retailer Truworths expects higher profits due to increased sales.

Truworths, which also owns the UK shoe chain Office, said it expected net earnings per share, the main measure of earnings in South Africa, to rise between 8% and 11% during the 26 weeks ending June. Jan. 1, compared with 448.6 cents.

Truworths shares were up 3.35% at rand 65.70 at 1236 GMT.

Group retail sales rose 13.7% to R11.3 billion ($661.47 million).

“This is despite a record level of load shedding (power outages) in South Africa and increasing pressure on consumer disposable income in both South Africa and the UK due to rising interest rates and high inflation levels,” Truworths said.

Truworths Africa retail sales increased 13.8%, with sales in the final 9 weeks of the period up 10.6% to R4bn.

The country’s public electricity company suffered severe power outages last month, lasting up to 10 hours a day, as several of its generating units broke down.

Truworths said around 77% of its South African business turnover is covered by backup power.

Despite its relief efforts, “it is likely that the load outage has had a negative impact on store traffic and consequently retail sales, particularly in malls without emergency power,” it said.

Retail sales of its UK Office business increased 13.6% in sterling and 13.3% in rand.

($1 = R17.0831)

Vince Fernandez

"Professional food trailblazer. Devoted communicator. Friendly writer. Avid problem solver. Tv aficionado. Lifelong social media fanatic."

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