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Trading update 30 March 2014 to 30 August 2014
Mr Price Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004418/06)
ISIN: ZAE000026951
Share Code: MPC
("Mr Price Group" or "the Group" or "the Company")
TRADING UPDATE 30 MARCH 2014 TO 30 AUGUST 2014
During the first 18 weeks (30 March 2014 to 2 August 2014) of the
financial year ending 28 March 2015, Mr Price Group recorded total
sales growth of 16.1% (comparable 12.1%) over the corresponding
period in the prior year (31 March 2013 to 3 August 2013).
- Cash sales growth of 19.0% exceeded credit sales growth of 5.7%
and constituted 80.6% of total sales(LY: 78.6%)
- 24 stores were opened and 2 closed in the current period
- Closing space increased by 5.8% and weighted average trading
space increased by 4.0% over the comparable period
- Units sold increased by 5.4%
- Retail selling price inflation was 10.2%
The Apparel Segment (Mr Price Apparel, Mr Price Sport and Miladys),
which represents 73.2% of sales(LY: 72.0%), achieved sales growth of
18.0% (comparable 13.9%). Retail selling price (RSP) inflation of
11.6% in Mr Price Apparel (product mix 3.6% and price 8.0%)
contributed to the segment recording RSP inflation of 9.3%. Weighted
average trading space increased by 5.8% and units sold increased by
8.0%.
Mr Price Apparel delivered strong sales growth and continued to
increase market share, Mr Price Sport performed in line with
expectations and Miladys experienced a disappointing trading period
caused by the difficult credit environment (57.2% of sales on credit)
and some incorrect merchandise calls.
The Home Segment (Mr Price Home and Sheet Street) achieved sales
growth of 11.2% (comparable 7.4%). RSP of 12.5% was mainly due to Mr
Price Home, which recorded 16.0% (mix 8.2% and price 7.8%). Weighted
average trading space increased by 0.7% and units sold decreased by
1.2%.
Sales growth in this segment was driven by Mr Price Home, which
represents 70.1% of the Group’s total homeware sales. The chain’s
higher LSM customers are more able to withstand the current pressures
on discretionary spending than Sheet Street’s customers.
Group sales for the 4 week period, 3 August to 30 August 2014 (which
are not included in the commentary above) increased by 11.7%
(comparable 7.0%).
The retail environment is expected to remain constrained for the
remainder of the year. As a fashion-value retailer, the Group is
comparatively well positioned. However, cognisance must be taken of
the comparable period last year when Mr Price Apparel performed
exceptionally well, thereby setting a very high base. The other
chains are also expected to face tougher trading conditions in the
second half.
The above-mentioned figures do not constitute an earnings forecast
and have not been reviewed and reported on by the Company’s external
auditors.
Durban
3 September 2014
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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