Micro cap Luxe Holdings, the luxury goods group that emerged as Taste exited its food businesses, says a dent to consumer sentiment as a result of SA’s third Covid-19 wave and violent riots in July weighed on its first half-recovery.
Luxe was renamed from Taste in July 2020 after its exit from its restaurant interests. These included the Starbucks licence in SA, as well as Maxi’s, Domino’s Pizza and The Fish & Chips Co.
As of the group’s year to end-February 2021, it had 48 NWJ stores, six Arthur Kaplan stores, and one World’s Finest Watches store.
The group said in a trading update for the six months to end-August that it expects its headline loss per share to improve by between 66% and 86% from the prior period's loss of 101.7c. This an improvement of up to R19.3m for a group valued at R23m on the JSE.
Same-store sales for its first quarter ending June surged 338% on the corresponding period in 2020, when SA was in hard lockdown. However, the third wave of Covid-19, negative consumer sentiment and the rioting and looting in July hit the group in its second quarter, when sales fell 8% compared to 2020, and were down 13% compared to 2019.
Luxe has said previously it is confident about the long-term demand for jewellery and luxury watches, and said on Friday it was pleased with its performance in September, when same-store sales were up 5% from 2020, and 13% from 2019.
In afternoon trade on Friday the group's little-trade shares were unchanged at R1.05, barely moved from the start of 2021.
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