By Siyanda Mthethwa
JOHANNESBURG, (Reuters) -South African upmarket fashion retailer Truworths reported an 8% decline in full-year profit on Thursday, citing the impact of big discounts that followed delayed deliveries of winter stock.
Headline earnings per share, the main profit measure in South Africa, fell to 752.1 cents for the year ended June 30 from 817.9 cents the previous year.
By 1436 GMT, the Johannesburg-listed stock was trading down 6.7% to 60.54 rand, while the wider index was flat.
“Late deliveries of winter merchandise in the prior period due to port congestion and global shipping disruptions, combined with the delayed onset of winter in 2024, dampened seasonal demand,” Truworths said in a statement.
It said, it had had to increase “in-season promotional activity” to manage inventory levels.
Group trading profit decreased by 31.4% to 2.9 billion rand ($165.12 million) while the gross profit margin decreased to 53.1% from 52.3%.
Group sales increased by 2.7% to 22 billion rand with growth hindered by Truworths Africa, the group’s biggest business that reported a sales decline of 0.4% to 14.5 billion rand.
The group’s UK-based shoe retailer Office, however, reported sales growth of 9.7% to 7.5 billion rand.
Truworths declared a final cash dividend of 170 cents per share, a 13% drop from last year.
($1 = 17.5632 rand)
(Reporting by Siyanda Mthethwa; Editing by Kirsten Donovan and Barbara Lewis)
