Mr Price reported an 8,3% in the third-quarter sales on Wednesday, however Truworths International flagged lower half-year profit.
While some clothing retailers in Africa’s most advanced economy have reported better sales than others this week, Truworths and Woolworths Holdings warned profits will be lower as consumers spent very cautiously over the festive season.
Political and policy uncertainty hindered business; proven through consumer confidence for the most of last year. However, Cyril Ramaphosa’s win, who is viewed by the public as pro-business, has managed to reverse this notion.
Mr Price said total retail sales were R6,6 billion for the three months leading up to December; mainly from the core clothing division.
Mr Price spokesperson said in a statement, “despite a competitive retail environment, well executed merchandise offers resulted in lover markdowns and an improved gross profit age over the comparable period,”
Sales by Mr Price’s clothing division were up by 11,3%.
Truworths said it expects diluted headline earnings per share for the 26 weeks to 31 December to fall by up to 5% to between 372 cents and 380 cents. Half year sales rose by 1% compared to the directly corresponding period.
Data shows that South African retail sales increased in November by the biggest margin in more than five years. With some signs of recovery for the South African economy; there is a noticeable increase in consumer goods such as clothing, footwear and furniture.
The clothing retailer, The Foschini Group reported higher nine months and food retailer also reported higher six months in December.
However, Woolworths warned on Monday that its half-year profit could drop by as much as 17,5%.