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Business update and trading statement for the 52-week period ended 29 June 2025
Truworths International Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1944/017491/06)
JSE and A2X code: TRU
NSX code: TRW
ISIN: ZAE000028296
LEI: 37890099AFD770037522
('Truworths International' or the 'Group')
BUSINESS UPDATE AND TRADING STATEMENT FOR THE 52-WEEK PERIOD ENDED 29 JUNE 2025
OPERATING CONTEXT
Group Overview
During the 52-week period ended 29 June 2025 (the 'current period' or the 'period'), the
Group operated within persistently sub-optimal macroeconomic conditions. Despite these
headwinds, it continued to deliver best-in-class returns, supported by a robust balance
sheet and disciplined margin and cost management.
Truworths Africa
The period began with cautious optimism following South Africa's national general
elections in May 2024 and the subsequent formation of a Government of National Unity
('GNU'). Sentiment was buoyed by expectations of improved consumer confidence, the
introduction of the two-pot retirement savings system (enabling partial access to
retirement funds), and the potential for lower interest rates. Forecasts in some quarters
anticipated GDP growth of 2%–3% per annum.
However, much of this optimism failed to materialise due to a combination of geopolitical
uncertainties — particularly around tariffs and rising tensions in the Middle East — and
internal challenges within the GNU. Consequently, South Africa's macroeconomic
environment remained constrained, characterised by low economic growth, stagnant real
wage increases, elevated unemployment, and rising living costs, all of which continued to
erode consumer disposable income.
Four interest rate cuts during the period, beginning on 20 September 2024, provided some
relief to financially strained consumers. Nonetheless, the South African Rand remained
volatile, and its periods of weakness contributed to inflationary pressure, particularly
through higher costs of imported goods and services.
Truworths Africa's gross profit margin came under pressure relative to historical norms.
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. As a result, elevated markdowns were required in the first half of the
current period to meet terminal stock objectives. Continued weak trading conditions
necessitated increased in-season promotional activity to manage inventory levels
effectively.
Despite these challenges, management was encouraged by signs of recovery in the South
African consumer credit environment. The TransUnion Consumer Credit Index, which
gauges the overall health of credit consumers, rose above 50 points in Q4 of the 2024
calendar year for the first time since June 2022, indicating improving credit conditions.
Truworths however maintained a prudent approach to credit granting and the Truworths
Africa credit book remains resilient and well-managed, underpinned by sound credit risk
practices and strong collection strategies. Credit quality continued to improve during the
period, and demand for new accounts remained robust.
Investment in the new Truworths Africa distribution centre was completed during the
current period, and a large portion of merchandise distribution has transitioned to this
facility, with good opportunity for part allocation and increased replenishment.
Significant effort was spent on refining the merchandise mix and investment in store
refurbishment continued, in anticipation of a more favourable macroeconomic outlook over
the next 12 to 24 months.
Office UK
Office UK delivered strong trading performance during the current period, consistently
outperforming the broader market despite ongoing macroeconomic challenges in the
United Kingdom. This resilience was driven by its differentiated market positioning,
advanced e-commerce platform and strategic brand partnerships.
UK consumer spending remained subdued due to declining real disposable incomes since
late 2021, compounded by elevated interest rates and modest economic growth.
Nevertheless, branded fashion footwear, a core category for Office UK, proved resilient
and performed well throughout the period.
The Group continued to invest significantly in Office UK's real estate and systems
capabilities to capitalise on emerging opportunities. During the period, one new store was
added (net of closures), and nine stores were renovated, relocated or expanded in line
with the latest store design standards. These investments have exceeded trading
expectations and met capital expenditure benchmarks, reinforcing the success of the store
development and remodelling programme.
TRADING PERFORMANCE
Group retail sales for the current period increased by 2.7% to R22.0 billion relative to the
R21.4 billion reported for the 52-week prior period ended 30 June 2024 (the 'prior period'
or '2024').
Retail sales performance by trading period and business segment was as follows:
Change on
Retail sales prior period (%)
H1* H2^ Full year~ Full
26 weeks 26 weeks 52 weeks H1 H2 year
Group R12.5bn R9.5bn R22.0bn 2.4 3.2 2.7
Truworths Africa R8.3bn R6.2bn R14.5bn (1.1) 0.5 (0.4)
Office UK £180m £139m £319m 11.3 7.7 9.7
* 26 weeks from 1 July 2024 to 29 December 2024
^ 26 weeks from 30 December 2024 to 29 June 2025
~ 52 weeks from 1 July 2024 to 29 June 2025
Account sales comprised 46% (2024: 48%) of Group retail sales for the current period,
with cash sales increasing by 5.2% and account sales increasing by 0.1%, relative to the
prior period.
Truworths Africa
Truworths Africa's retail sales decreased by 0.4% relative to the prior period. Account
sales, comprising 70% (2024: 70%) of the segment's retail sales for the current period,
increased by 0.1% and cash sales decreased by 1.5%.
Online sales continued to show good growth in the current period, increasing by 33.7%
and contributing 6.5% (2024: 4.9%) to the segment's total retail sales.
Product (retail selling price) inflation averaged 1.2% for the current period (2024: 6.4%)
and trading space increased by 0.5% (2024: 0.9%).
Gross trade receivables in respect of the active account portfolio increased by 0.3% to
R6.45 billion and the number of active accounts decreased by 0.5%. Active book account
holders able to purchase and overdue balances to gross trade receivables were unchanged
relative to the prior period at 79% and 17%, respectively.
Office UK
Office UK's retail sales increased by 9.7% (in Sterling) relative to the prior period. In Rand
terms, retail sales increased by 9.4% to R7.5 billion (2024: R6.8 billion).
Online sales contributed 44.9% (2024: 46.2%) of the segment's retail sales in the current
period.
Continued investment in Office UK's real estate programme resulted in trading space
growth of 6.4% (2024: 11.4%) relative to the prior period, being lower than anticipated
because of the timing of a number of store projects.
EARNINGS
The Group estimates its earnings per share ('EPS') and headline earnings per share
('HEPS') for the current period, on an undiluted basis, to be within the ranges reflected in
the table below. Prior period earnings were significantly enhanced by the inclusion of
trademark and right-of-use asset impairment reversals, the impact of the first-time
consolidation of the Group's charitable trusts and insurance recoveries, with a combined
value of R993 million, net of tax. The disparity between EPS and HEPS performance is due
to trademark and asset impairment reversals being included in earnings but excluded from
headline earnings.
52 weeks to 52 weeks to Estimated change
29 June 2025 30 June 2024 on prior period
(cents) (cents) (%)
EPS 712 – 754 1 046.9 -32% to -28%
HEPS 728 - 761 817.9 -11% to -7%
PRO FORMA EARNINGS INFORMATION
The Group estimates its EPS and HEPS for the current period, on a pro forma undiluted
basis that excludes the impact of net right-of-use asset impairments in the current period,
to be within the ranges reflected in the table below. The prior period pro forma EPS and
HEPS exclude trademark and right-of-use asset impairment reversals, the impact of the
first-time consolidation of the Group's charitable trusts and insurance recoveries.
Pro forma Pro forma Estimated
52 weeks to 52 weeks to change on pro
29 June 2025 30 June 2024 forma prior period
(cents) (cents) (%)
EPS 726 – 757 780.8 -7% to -3%
HEPS 726 – 757 780.8 -7% to -3%
The relevant amounts were extracted from the Group's accounting records, and in the
opinion of the directors, fairly reflect the pro forma financial results. A complete
reconciliation of the reported results to the pro forma results will be provided in the Group's
audited annual financial results for the 52 weeks ended 29 June 2025.
The pro forma financial information has been prepared in accordance with the Group's
accounting policies, is provided for illustrative purposes only and, because of its nature,
may not fairly represent the financial performance of the Group.
RESULTS ANNOUNCEMENT
The Group's audited financial results for the current period are scheduled for release on or
about Thursday, 28 August 2025.
Shareholders are advised that the financial information provided in this announcement is
the responsibility of the directors and that such information has neither been reviewed nor
reported on by the Group's external auditors.
13 August 2025
Cape Town
Sponsor in South Africa
One Capital
Sponsor in Namibia
Merchantec Capital
Date: 13-08-2025 05:22:00
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