By Nqobile Dludla
JOHANNESBURG (Reuters) -South African fashion retailer Mr Price reported a 10.1% increase in full-year earnings on Friday, supported by strong second-half performance amid improved sales growth and reduced markdowns.
Diluted headline earnings per share, a key profit measure in South Africa, rose to 13.79 rand, while operating profit grew 8.9% to 5.8 billion rand ($327 million) in the 52-week period ended March 29.
Group revenue rose 7.9% to 40.9 billion rand, with retail sales up 7.8% at 39.4 billion rand. Comparable store sales increased by 3.4%.
“The first half of the financial year was challenging for the retail sector but improved in the second half.
The growth in sales momentum through the second half was supported by strong comparable store sales growth and gross profit margin gains across all trading segments,” Group CEO Mark Blair said in a statement.
The group’s gross profit margin expanded 80 basis points to 40.5%, due to strong “merchandise execution” and lower markdowns, the retailer said.
Retail sales and comparable store sales in the second half accelerated to 9.9% and 5.7%, respectively, the retailer said.
This came despite a weaker February for the retail sector and the shift of school holidays and Easter from March to April.
Mr Price, which also sells sportswear and appliances, declared a final dividend of 593.50 cents, up 12.7% from last year.
($1 = 17.7496 rand)
(Reporting by Nqobile Dludla; Editing by Christopher Cushing and Sherry Jacob-Phillips)
