Truworths expects half-year earnings around flat after African sales fall

South African fashion retailer Truworths International revealed its half-year profit was likely to be flat to around 2% higher as constrained consumer spending has led to lower sales at its Africa business.

Source: Reuters/Esa Alexander

Truworths, which also operates in the UK, said it expects headline earnings per share - one of the main profit measures used in South Africa - to be between 489 cents and 499 cents in the six months ended December 28, from 489.2 cents in the prior year when HEPS fell 4.6%.

During that period, which included Black Friday and Christmas shopping, group retail sales were unchanged at R12.5bn ($771.59m), relative to the 26 weeks ended 29 December 2024.

Truworths Africa's retail sales performance remained constrained, albeit at a slightly higher gross margin, as South African consumers continue to face significant financial pressure. Sales decreased by 3.6%, the retailer said.

In contrast, its UK-based shoe retailer Office posted a 6.4% sales growth in Sterling terms, "supported by its unique positioning, strong brand appeal and the success of its store development and remodelling programme."