Truworths International Limited has announced impressive retail sales growth for the 52-week period ended 2 July 2023. Despite facing challenges in its key markets, the company reported a remarkable 11.4% increase in retail sales, amounting to R20.6 billion, compared to R18.5 billion reported in the 53-week prior period ended 3 July 2022. However, due to the inclusion of a 53rd week in the prior period, direct year-on-year comparisons are not comparable.
Steady Growth in a Challenging Economic Climate
Truworths International achieved this growth despite the challenging macroeconomic environment in South Africa and the United Kingdom. The group’s ability to maintain steady growth is attributed to its adherence to a sound Business Philosophy, effective cost management strategies, and consistent inventory and trade receivables management. Moreover, the rollout of new store formats bolstered the company’s performance, demonstrating resilience in the face of economic headwinds.
Compared to the corresponding 52 weeks of the 2022 financial period, the Group’s retail sales for the current period saw an impressive increase of 13.2%.
Retail Sales Performance by Business Segment
The Group’s retail sales growth was driven by its two key business segments: Truworths Africa and Office.
Truworths Africa Segment:
Office Segment:
Impact of the Energy Crisis
Truworths International also faced challenges from the energy crisis in South Africa, with electricity load shedding significantly affecting economic growth and job creation. The Group invested approximately R40 million in backup power solutions for its stores in South Africa to mitigate the impact of load shedding. At the end of the current period, 87% of the segment’s South African sales stores were equipped with alternative power sources.
Financial Results and Future Outlook
Truworths International is currently finalizing its financial results for the current period, subject to external audit. The Group is scheduled to release its audited results on or about Thursday, 31 August 2023.
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