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Truworths International [JSE:TRU] announced on Wednesday that retail sales for the first 16 trading weeks (2 July 2018 to 21 October 2018) of the 2019 financial period increased by 4.5% to R5.3bn compared to R5.1bn during the same period in 2017.
Account sales comprised 50% of group retail sales for the current period, with account and cash sales increasing by 4.9% and 4.1% respectively relative to the prior period.
Retail sales for Truworths excluding the UK-based Office segment increased by 3.6% to R3.8bn relative to the prior period’s R3.7bn. Account sales comprised 70% of these retail sales. Trading space increased by 1.9% on the prior period and is expected to increase between 2% and 3% for the full 2019 financial period.
Retail sales for the group’s UK-based Office segment increased in Sterling terms by 0.5% to £83.3m relative to £82.9m for the prior period. In rand terms, however, retail sales for Office increased by 6.7% to R1.5bn, aided by rand weakness. Trading space decreased by 1.0% on the prior period and is expected to remain at this level for the full 2019 financial period.
The group said that, although the trading environment is expected to remain challenging, it will continue to utilise its extensive experience to manage the risk of fashion through its proven merchandise design and buying processes and manage the risk of the book through continuing to apply strategies to ensure the on-going health of the portfolio.
Shareholders are advised that this business update does not constitute an earnings forecast; and that such information has neither been reviewed nor reported on by the group’s external auditors.
The group’s interim results for the 26-week period ending December 30 2018 are scheduled for release on or about February 21 2019.
By early afternoon trade the share price of Truworths was up 0.43% to R80.05 per share.
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