Clothing retail Group, Truworths sales increased by 25.1 percent in the 26 weeks to 5 January 2020 as compared to prior period despite a challenging year marred by currency devaluations and inconsistency in production supplies.
Profit for the period was ZWL 6.883 million.
In its interim results for the year, the company realised positive product uptake with all its subsidiary stores recording improved sales.
Truworths recorded a 24.1 percent increase in apparel sales, while Topics sales grew 30.5 percent and Number 1 realised 9.4 percent increase in sales.
However, headwinds in the local economy saw imported international brands stocks drop as consumer appetite wanned.
“Affordability was an issue due to discretionary income lagging inflation. product volumes and availability were constrained due to a shortage of foreign exchange and local liquidity which adversely affected local supplier base. Imported international brands volumes have come down,” the company said in a statement.
Year-on-year inflation in the economy skyrocketted by around 500 percent during the trading period, leading to multiple price adjustments by the company in order to stay afloat.
Gross profit margin improved by 65.8 percent to ZWL 21.905 million.
Trading expenses due to hyper inflation excluding depreciation increased by 31.6 percent but could not offset operating profit margin which improved by 24.2 percent.
The number of active accounts increased by 0.2 percent over the comparative period to 93 012. Of these 12 764 (2019: 13 449) were on the instore Credit Card at period end.
The board did not declare a dividend due to the need to finance increased working capital requirements in a hyperinflationary environment with limited supplier credit terms, the company said.
