The clothing retailer, who released results for the 52 weeks ended June 30 2013, reported that profit before tax was recorded at 3.3 billion rand compared to the 3.1 billion rand for the 53 weeks ended 1 July 2012.
Headline earnings per share increased 8.4 per cent to 570.8 cents for the 52 weeks ended June 30 2013 from 526.7 cents for the 53 weeks ended 1 July 2012.
A gross cash dividend of 158 cents per share has been declared, an increase of 11 per cent over the prior 53-week period.
“Predictions are that the economy and consequently the credit environment are unlikely to improve in the 2014 financial period and restrictive credit granting criteria will limit account acquisition and credit sales,” the group said in a statement.
“Ongoing weakness in the rand exchange rate against the US dollar will be managed to contain inflationary pressures on merchandise as the Group has successfully done in prior periods of currency volatility.”
Operating profit increased 6 per cent to 3.4 billion rand from 2012’s 3.2 billion rand but the operating margin declined to 34.5 per cent.
The group’s credit sales grew 9 per cent, contributing 72 per cent to retail sales for the period.
Truworths’s divisional brands include Identity, Truworths Man, Daniel Hechter Paris, Inwear, Uzzi, Truworths ladieswear and others.
Truworths ladieswear division sales were recorded at 3.6 billion rand for the 52 weeks ended June 30 2013, the highest sales figures among its divisions. Truworths menswear followed with 1.9 billion rand in sales and Identity with 1.5 billion rand.
“Ongoing weakness in the rand exchange rate against the US dollar will be managed to contain inflationary pressures on merchandise as the Group has successfully done in prior periods of currency volatility,” the statement added.
“Against this challenging trading background the Group will aim to build sales growth momentum by delivering high-quality, internationally inspired fashion across the brand portfolio.”
The group’s trading space increased by 8.1 per cent following the opening of a net 17 Truworths, 19 Identity and two Truworths Man stores. Two Uzzi stores and one YDE store were closed. The Group’s store base passed the 600 mark and currently had a total of 604 stores at the end of the period.
This includes 40 stores outside South Africa, following the opening of four new stores in Lesotho, three in Zambia, two in Ghana and two in Nigeria.