Clothing retailer Mr Price reported on Monday that total sales grew by 16.9 percent and comparable sales by 8.7 percent for the 18 weeks to 2 August 2008, which constitutes the first four months of its current financial year.

Cash sales constituted 83 percent of total sales for the period, during which inflation of 5.3 percent was recorded, it said in a trading statement.

"The Apparel Division, which represents 69.3 percent of group sales and which comprises Mr Price, Mr Price Sport and Miladys, reported sales growth for the period of 21.1 percent and comparable sales growth of 13.5 percent. Inflation of 6.0 percent was recorded," the group said.

The Home Division, comprising Mr Price Home and Sheet Street recorded sales growth of 8.4 percent and a decrease in comparable sales of 0.8 percent.

"This performance reflects the continued impact of increases in interest rates and property rates as well as price increases in fuel, food and electricity. These factors combined resulted in consumers reducing their spend on home related products, which has negatively impacted operating margins. Inflation of 3.2 percent was recorded," Mr Price stated.

"The trading of the group in August 2008 has maintained the same trend," it added.

"The abovementioned figures have not been reviewed and reported on by the company's auditors and this trading update does not constitute an earnings forecast. Shareholders are reminded that earnings per share will be impacted as the dividend paid in the current period attracted STC, whereas in the prior year the distribution from share premium did not," the group pointed out.