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Reuters
Published
Aug 19, 2009
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S.Africa's Truworths says headline EPS up 14%

By
Reuters
Published
Aug 19, 2009

JOHANNESBURG, Aug 19 (Reuters) - South Africa's clothing retailer Truworths (TRUJ.J) posted a 14 percent rise in headline EPS, driven by higher prices and new stores, and said it expected trading conditions to remain tough in the second half.


Womenswear at Truworth's - www.truworths.co.za

The company said headline earnings per share rose 14 percent to 337.6 cents in the 52 weeks to June 28, at the top-end of its own forecast for a rise of 10-15 percent.

Truworths said retail sales for the period increased 11 percent to 6.24 billion rand ($771.9 million) while product inflation sat at about 10 percent.

The company raised its final divedend by 19 percent to 83 cents.

After years of bumper growth fuelled by a fast-growing black middle class, South African retailers have struggled to keep sales and profit rising faster than inflation, as the country's first recession in 17 years dampens consumer spending.

Truworths shares fell 0.94 percent to 37 rand by 1221 GMT, lagging a 1.08 percent fall in the JSE index of general retailers .JGERE.

South Africa's finance minister said this week Africa's biggest economy would likely lag behind the economic recovery and growing optimism seen in some other countries. The economy contracted 3 percent in the second quarter and retail sales fell 6.7 percent year-on-year in June. South Africa's biggest general retailer Massmart (MSMJ.J) has said it expects to report an up to 8 percent drop in headline EPS, as spending slows at home and as weaker African currencies hit its stores in the rest of the continent.

(Reporting by Tiisetso Motsoeneng)

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