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Mr Price Group Limited
(Registration number 1933/004418/06)
Incorporated in the Republic of South Africa
ISIN: ZAE000200457
LEI number: 378900D3417C35C5D733
JSE and A2X share code: MRP
("Company" or "group")
VOLUNTARY TRADING UPDATE FOR THE 13 WEEKS ENDED 28 JUNE 2025
During the first quarter from 30 March 2025 to 28 June 2025 ("the
Period") of the financial year ending 28 March 2026, Mr Price
Group's retail sales increased by 6.3% to R9.0bn and comparable
store sales grew by 3.0%.
Market share gains of 10bps were recorded during the Period as the
group outperformed the total comparable market's retail sales
growth, according to the Retailers' Liaison Committee (RLC). The
group has gained more than R300m in market share from competitors
over the last twelve months, highlighting the effectiveness of its
differentiated fashion-value offering.
Group Q1 Performance
The group reported in its FY2025 annual results disclosure that in
the first two months of FY2026, retail sales grew by 11.6% (April
+11.3%, May +11.9%), resulting in market share gains of 20bps.
This performance was positively impacted by the timing shift of
Easter holidays into April and strong sales growth in May due to
a timeous winter season against a weak base of negative sales
growth (pre-election consumer restraint in 2024).
In June 2025, RLC retail sales for the total market declined. The
group recorded a similar trend with retail sales decreasing 5.1%
against a firm base of +12.7%. The group's strong performance in
June 2024 was primarily due to the late onset of winter which
created pent-up customer demand in the first two weeks of the month
and was further buoyed by the sharp rise in consumer confidence
following the election outcome. The group anticipated the softer
sales growth for June 2025, however the impact of the shift in
school holidays from the last two weeks into July was greater than
expected. Higher markdown activity was required, which was
observed across a highly promotional sector. This was a significant
factor in the Q1 Gross Profit (GP) margin decreasing 20bps. The
group anticipates its H1 GP margin to remain in line with the prior
year.
The group exited the winter season clean and is comfortable with
its closing stock position.
South African retail sales grew 6.0% to R8.3bn and comparable sales
increased 2.6%. Non-South African corporate-owned store sales
increased 10.4%. Total store sales increased 6.3% while online
sales increased 7.6%. Online sales contribution grew to 2.4% of
total retail sales during the Period, with particularly strong
growth in the Homeware segment. Other income decreased 2.5% to
R312.6m.
Group retail selling price (RSP) inflation of 3.1% was well managed
to ensure that customers continue to receive superior value and
total unit sales increased 3.2% to 67.6m.
The store footprint increased by 31 stores (net) and the group's
total footprint expanded to 3 061 stores. Trading space increased
3.7% on a weighted average basis.
Cash sales, which constitute 87.5% of total retail sales, increased
6.3%. Credit sales increased 6.1% as the group's strict credit
granting criteria continued.
Group July Performance
For the first 3 weeks in July 2025 (not included in the results
above), retail sales increased by 12.9% at an improved GP margin
to the prior year.
Segmental performance
Retail sales for the group's corporate-owned stores were as
follows:
Retail sales Cont. to
growth retail sales
Q1 FY2026 vs FY2025
Apparel segment 6.0% 78.6%
Homeware segment 6.4% 17.8%
Telecoms segment 12.7% 3.6%
Group 6.3% 100.0%
Retail sales in the Apparel segment grew 6.0% during the quarter,
gaining 20bps of market share. Comparable store sales for the
Period increased 2.6% and unit sales increased 3.2%. Mr Price
Apparel and Studio 88 recorded strong double-digit growth in April
and May, however sales growth in June was impacted by particularly
strong base effects for these two chains. Power Fashion continued
its trend of delivering double-digit sales growth, and along with
Miladys gained market share in all months of the quarter, while Mr
Price Sport's performance momentum continued.
The Homeware segment increased retail sales by 6.4% and comparable
store sales grew 5.3%. Mr Price Home and Sheet Street continued to
build on the improved sales momentum from FY2025 and on a combined
basis achieved comparable sales growth of 5.0%. Yuppiechef's
market share continued to expand in Q1, recording 14 consecutive
months of gains.
The Telecoms segment continued its double-digit sales growth
record, increasing by 12.7%. Further market share gains were
achieved, up 20bps according to GfK (May 2025, latest available
data).
Outlook
Since the beginning of 2025, global and local business conditions
have remained disruptive due to the uncertainty arising from
proposed trade tariffs. This has hindered broader economic
recovery and continues to cloud the prospects for sustained local
growth, as indicated by the reported GDP growth of 0.1% for Q1
2025.
The volatility of the domestic economic landscape makes the outlook
for the remainder of the financial year likely to be characterised
by inconsistent consumer trends. The short-term relief measures of
low inflation and interest rates will intersect with an
increasingly firm H2 base (two-pot retirement inflows in 2024), as
well as rising food and fuel prices which will impact disposable
income.
Despite this, the group remains optimistic that it can continue to
achieve margin accretive market share gains. Annual space growth
is anticipated to increase on a weighted average basis by
approximately 4% and is expected to continue delivering against
the group's high return thresholds. Sharp focus remains on driving
consistent performance by its key growth vehicles in the Apparel
and Telecoms segments, while the strategic improvements made on
strengthening the Homeware segment have delivered positive
progress.
These efforts, supported by the group's fiscal discipline and
considered capital allocation framework, give it confidence that
it can achieve its medium-term targets and continued delivery of
sustainable long-term returns.
The above-mentioned figures and information contained herein do
not constitute an earnings forecast or estimate and have not been
reviewed and reported on by the Company's external auditors.
Durban
23 July 2025
JSE Equity Sponsor and Corporate Broker
Investec Bank Limited
Date: 23-07-2025 07:05:00
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