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IOL News
2 days ago
- Business
- IOL News
Mr Price Group raises final dividend 12. 7% after market share gains in volatile consumer market
Mr Price Home store at Canal Walk, Century City. The group gained market share and sales in its 2025 financial year, with the faster sales momentum of the second half continuing into the first quarter of the 2026 financial year. Image: Ian Landsberg/ Independent Newspapers Mr Price Group increased its final dividend a creditable 12.7% to 593.5 cents a share after the value fashion retailer managed to raise its operating profit margin through lower markdowns, increased sales, and market share gains, after a muted first half. Total revenue increased by 7.9% to R40.9 billion, and the group gained 50 basis percentage points (bps) of market share, as measured by the Retail Liaison Committee. The gross margin expanded 80 bps to 40.5%, and operating profit reached a record level of R5.8bn, with the operating margin increasing 20 bps to 14.2%. Headline earnings a share increased 10.7% to 1 424 cents, respectively, after a stronger second half. This was despite the weaker month of February for the retail sector and the shift of school holidays and Easter to April, after the financial year-end, from March. 'The first half was challenging for the retail sector but improved in the second half. We are very satisfied to have gained similar levels of market share in both periods, reflecting the value we were able to provide our customers despite very different economic conditions,' CEO Mark Blair said in a statement on Friday. He said the sales momentum through the second half was supported by strong comparable store sales growth and gross profit margin gains across all trading segments. Revenue exceeded R40bn for the first time. Group retail sales of R39.4bn increased 7.8%, and comparable store sales increased 3.4%. In the second half, retail sales and comparable store sales accelerated to 9.9% and 5.7%, respectively. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Other revenue increased 6.6% to R1.3bn. Group store sales increased 7.8%, and online sales by 7.9%. Momentum improved in the second half across both sales channels, with sales growing 9.5% and 11.5%, respectively. Group unit sales increased 3.6% (4.9% in the second half), and retail selling price (RSP) inflation came to 3.7%. The group opened 184 new stores across its 15 trading chains, expanding its total store footprint to 3,030 stores. Interest rate cuts supported an improving credit environment in the second half, reflected in the group approval rate increasing to 20.3% and peaking at 23.8% in March 2025. Credit approvals would continue to be cautiously managed, the group directors said. Total expenses increased 10%, which included average space growth of 4.3%. The group's expenses to retail sales and other revenue ratio of 27.9% was within targeted range. On the outlook, Blair said a competitive and low-growth economy required the government reform agenda to be accelerated to create higher levels of employment and stimulate economic activity. He said the consumer environment in South Africa remains volatile. In the short term, consumer relief was supported by low inflation, lower petrol prices, and interest rate cuts, which collectively increased disposable income. Real wage growth experienced some recovery. However, the sustainability of an improving consumer environment in the medium term could be challenging due to the uncertainty from the global and domestic economies. He said Mr Price Apparel was the most shopped retailer in South Africa according to MAPS. Group retail sales in the first quarter of the 2026 financial year had increased 11.6%, with all trading divisions gaining market share in April 2025. 'Focus remains on extracting maximum value through profitable market share from our 15 trading chains and investment into strategic enablement projects, predominantly in the technology and supply chain functions,' said Blair. About 200 new stores would be opened in the 2026 financial year. Three acquisitions in recent years had delivered a combined operating profit of R1.2bn in the 2025 financial year and continue to be earnings accretive. BUSINESS REPORT Visit:
IOL News
2 days ago
- Business
- IOL News
Mr Price hits milestone with 3,000 stores despite anaemic economic outlook
Mr Price Home store at Canal Walk, Century City Image: Ian Landsberg/Independent Newspapers JSE-listed Mr Price Group demonstrated the resilience of its fashion-value business model, posting a 7.9% increase in total revenue to R40.9 billion for its 2025 financial year. In its results statement issued on Friday, Mr Price said it reached a milestone of now having just more than 3,000 stores during the full year, as it opened 184 new stores across its 15 trading chains. Weighted average trading space increased 4.3%. However, Global economic uncertainty has cast a shadow when it comes to growth prospects in 2025, as potential US tariffs threaten markets worldwide, it said. 'The South African economy has not been spared from this impact and its forecast gross domestic product growth has been revised downwards from the previously bullish outlook at the end of 2024,' the group noted. It added that South African consumers have received some short-term relief through lower inflation, decreasing fuel prices, and interest rate cuts totalling 1 percentage point, all of which contributed to increased disposable income, Mr Price said. It added that, while real wage growth is showing signs of recovery, the sustainability of these improvements remains questionable given both global and domestic economic uncertainties. Despite these challenges, Mr Price remains focused on its fashion-value merchandise strategy, which continues to resonate with its growing customer base. The retailer maintains its position as South Africa's most shopped clothing store according to MAPS data, reinforcing its commitment to being the "customer's value champion" even in volatile times. The retailer gained 0.5 percentage points of market share according to Retailers' Liaison Committee data, while expanding its gross margin by 0.80 percentage points to 40.5%. The group achieved a record operating profit of R5.8bn, with its operating margin increasing 20 basis points to 14.2%. Basic and headline earnings per share grew 11.0% and 10.7% cents respectively. Its second half performance was particularly strong, with diluted headline earnings per share growing 12.1%, it said. This came despite February's weaker retail performance and the shift of school holidays and Easter from March to April, Mr Price noted. Mr Price attributed the improved performance to better sales momentum and lower markdowns following a more subdued first half in the retail sector. Group CEO Mark Blair said that, while the first half presented challenges for retailers, conditions improved in the second half. "We are very satisfied to have gained similar levels of market share in both periods, reflecting the value we were able to provide our customers despite very different economic conditions," he said. Blair added that growth in sales momentum through the second half was supported by strong comparable store sales growth and gross profit margin gains across all trading segments. The board declared a final dividend of 593.5 cents per share, up 12.7%. IOL
IOL News
2 days ago
- Business
- IOL News
Mr Price hits milestone with 3,000 stores despite anaemic economic outlook
Mr Price Home store at Canal Walk, Century City Image: Ian Landsberg/Independent Newspapers JSE-listed Mr Price Group demonstrated the resilience of its fashion-value business model, posting a 7.9% increase in total revenue to R40.9 billion for its 2025 financial year. In its results statement issued on Friday, Mr Price said it reached a milestone of now having just more than 3,000 stores during the full year, as it opened 184 new stores across its 15 trading chains. Weighted average trading space increased 4.3%. However, Global economic uncertainty has cast a shadow when it comes to growth prospects in 2025, as potential US tariffs threaten markets worldwide, it said. 'The South African economy has not been spared from this impact and its forecast gross domestic product growth has been revised downwards from the previously bullish outlook at the end of 2024,' the group noted. It added that South African consumers have received some short-term relief through lower inflation, decreasing fuel prices, and interest rate cuts totalling 1 percentage point, all of which contributed to increased disposable income, Mr Price said. It added that, while real wage growth is showing signs of recovery, the sustainability of these improvements remains questionable given both global and domestic economic uncertainties. Despite these challenges, Mr Price remains focused on its fashion-value merchandise strategy, which continues to resonate with its growing customer base. The retailer maintains its position as South Africa's most shopped clothing store according to MAPS data, reinforcing its commitment to being the "customer's value champion" even in volatile times. The retailer gained 0.5 percentage points of market share according to Retailers' Liaison Committee data, while expanding its gross margin by 0.80 percentage points to 40.5%. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The group achieved a record operating profit of R5.8bn, with its operating margin increasing 20 basis points to 14.2%. Basic and headline earnings per share grew 11.0% and 10.7% cents respectively. Its second half performance was particularly strong, with diluted headline earnings per share growing 12.1%, it said. This came despite February's weaker retail performance and the shift of school holidays and Easter from March to April, Mr Price noted. Mr Price attributed the improved performance to better sales momentum and lower markdowns following a more subdued first half in the retail sector. Group CEO Mark Blair said that, while the first half presented challenges for retailers, conditions improved in the second half. "We are very satisfied to have gained similar levels of market share in both periods, reflecting the value we were able to provide our customers despite very different economic conditions," he said. Blair added that growth in sales momentum through the second half was supported by strong comparable store sales growth and gross profit margin gains across all trading segments. The board declared a final dividend of 593.5 cents per share, up 12.7%. IOL
