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Truworths profit up

Business
Clothing retailer, Truworths saw its group merchandise sales for the six months ended January 10, 2016 rising by 6,6% to $11 million from the same period last year attributed to increased sales at its unit, Topics.

Clothing retailer, Truworths saw its group merchandise sales for the six months ended January 10, 2016 rising by 6,6% to $11 million from the same period last year attributed to increased sales at its unit, Topics.

BY BUSINESS REPORTER truworths

The increase in sales comes despite a reduction in the number of active account holders who made purchases during the period. At period end, 78,8% of the group’s account holders were able to make purchases down from 83,3% recorded last year, Truworths said.

Sales at Topics were 12,6% up from the prior year. Sales at Truworths were up by 1,9%. The story was different for Truworths’ mass market unit where sales declined by 4,3% during the period under review.

The group said the number of active accounts increased by 9,7% over the comparative period to 86 270.

Of the active accounts, 10 755 were on the in-store credit card during the period under review up from 7 112 recorded in the comparable period last year.

It said trade receivables increased by 23% mainly as a result of more customers opting for the 12 months’ credit option.

Profit after tax was $327 876 during the period up from $49 370 recorded last year.

In its outlook, Truworths said the trading and credit environment was expected to deteriorate during the remainder of the 2016 financial period.

“Consumer incomes will come under increased stress levels in an environment characterised by job losses, delayed pay dates and reduced earnings. Focus will be on the management of trade receivables so as to maximise cashflows and ensure improvement and enhanced quality of the book,” it said.