Fashion retailer Mr Price has flagged a possible profit rise of more than a fifth for its 2022 year, saying it experienced strong sales growth despite unrest that hit about 7% of its store base.
Headline earnings per share (Heps) are expected to rise by between 17% and 22% in the year ending April 2, Mr Price said in a trading update, with the prior year having an additional week of trading.
Heps is the primary profit measure in SA that excludes one-off items, and the group’s update on Thursday implies a profit of as much as R3.36bn for the group, which is valued at R50.3bn on the JSE.
As of its half-year, Heps had risen by more than a third. At the time, Mr Price reported that Mr Price Apparel, its largest division, had gained market share for 19 consecutive months, with the group attributing this to its value proposition for customers, adding that this highlights the defensive nature of its business.
The results have also been bolstered by the R1.5bn acquisition of Power Fashion, effective April 2021, and R285m for Yuppiechef, effective August.
Mr Price’s results will include the insurance proceeds for asset write-offs incurred for stock, cash and fixtures as a result of the civil unrest, it said. Claims for business interruption losses relating to this event continue to be assessed and it is anticipated that these additional insurance receipts will be received in its 2023 year.
Civil unrest in KwaZulu-Natal and parts of Gauteng in July resulted in the looting of 111 of the group’s 1,592 stores, or about 7%.
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