South Africa’s Mr Worth stated on Thursday it might pay a remaining dividend after full-year revenue rose 1.9% on a powerful second half and because it captured a much bigger share of the market, pushing its shares to a two-year excessive.
South African clothes retailers had been hit exhausting by Covid-19 lockdowns in April and Might final 12 months and the following second wave of Covid-19 infections. Hundreds of thousands of job losses because of the pandemic additionally constrained discretionary spending.
Nonetheless the pandemic additionally sparked a house enchancment and DIY development, giving a recent lease of life to retailers.
The finances clothes and homeware retailer, benefitting from value-seeking buyers, declared a remaining dividend of 462.7 cents per share, having skipped a payout a 12 months in the past.
It gained R1.2 billion in market share, with its clothes enterprise gaining floor each month, Chief Government Mark Blair stated.
The corporate’s shares rose as a lot as 13% to their highest since Might 2019.
“Mr Worth launched stable outcomes that beat consensus expectations throughout most metrics in a really powerful working surroundings,” Anchor Capital’s fairness analyst Zinhle Mayekiso stated.
Commerce within the first six weeks of its new monetary 12 months, to Might 15, has additionally been robust, with group retail gross sales rising 27.5% in comparison with the identical interval in 2019, the retailer stated.
For the 2020 12 months, diluted headline earnings per share (HEPS), the principle revenue measure in South Africa, ticked as much as 1,049 cents within the 53 weeks ended April 3, from 1,029.4 cents a 12 months earlier. Diluted HEPS within the second half grew 21.4%.
Whole income from persevering with operations fell 2.9% to R22.3 billion ($1.62 billion), with retail gross sales falling 2.4%. On-line gross sales grew 64.1%, greater than doubling in Mr Worth attire and Mr Worth sport.
In clothes, retail gross sales and different revenue fell 5.8% total, however notably improved within the second half as lockdowns eased, rising 5.9%. Homeware continued to capitalise on restricted mobility and the work-from-home development, rising gross sales and different revenue by 4%.