South African vogue retailer Truworths warned on Monday that half-year revenue progress had slowed after financially strapped consumers kept away from discretionary spending.
Truworths mentioned retail gross sales in South Africa – its largest market – had been affected by poor financial situations and excessive rates of interest which decreased disposable earnings and affected client confidence.
“As well as, port congestion points in South Africa resulted in decrease than anticipated deliveries of products for the December interval,” Truworths added.
Truworths’ headline earnings per share for the 26 weeks to December 31 would rise by at most four per cent, in contrast with progress of 10.three per cent in the identical interval a 12 months earlier, the posh retailer mentioned.
The group’s retail gross sales rose eight.2 p.c year-on-year to R12.2 billion (US$650.four million), and gross sales at Truworths Africa, its largest enterprise, fell zero.three p.c to R8.four billion. rands. Black Friday and festive reductions additionally failed to draw consumers in South Africa, the place retail gross sales from October 30 to December 31 fell 1.6 p.c to R4 billion.
Workplace, the group’s British-based footwear chain, elevated its gross sales in sterling phrases by 15.6 p.c and 33.1 p.c in South African rand phrases within the 26-week interval.