HARARE – Listed clothing retailer, Truthworths’ revenue for the half year to ending January 07, 2018 jumped 10 percent to $8, 6 million on increased sales volumes across chain.
Its three chain stores, Truworths, Topics and Number 1 stores’ sales volumes increased by 18 percent, 4 percent and 24 percent respectively.
The group achieved a net profit of $0, 5 million from a loss of position of $0, 9 million in the same period last year.
Gross margins profit margins improved to 50 percent compared to 38 percent in the prior year comparable period on the back of increased sales at full margin.
Chief executive officer Themba Ndebele said trading expenses including trade receivables costs decreased by 3, 5 percent while an operating profit margin of 11, 6 percent was achieved compared to a loss margin of -20 percent during the same period last year.
During the period under review, the number of active accounts increased by 4, 7 percent over comparative period to 90 399. At least 12 931 of the accounts were instore credit card at period end. Trade receivables increased by 6, 9 percent on increased sales on credit.
Doubtful debt allowance as a percentage of gross trade receivables increased by 8, 2 percent from 8 percent in the same period last year.
While inflationary pressures continue to have a knock on effect on consumer spending with foreign curre4ncy shortages resulting in product shortages and limiting sales growth, management at Truworths remain upbeat of improved earnings.
The industry relies on imports as the country does not manufacture polyester material.
“However, trading conditions should remain buoyant with bonuses to be paid by Government in the period March to June.
“There is a positive sentiment in the country and hope for an improved economic environment,” said Mr Ndebele.
Truworths did not declare a dividend for the period.