Foschini Limited
Registration number 1937/009504/06
Profit warning
As stated in the interim report to shareholders for the 6 months ended 30
September 2000, the company indicated that results for the second half of the
year would be very dependent on an upturn in trading, particularly in November
and December. The announcement warned that earnings for the full year would
not match those of the previous year, which included a 53rd trading week.
Whilst the last 2 weeks of December met expectations, sales for the period from
mid-October to mid-December were extremely disappointing, resulting in bigger
than expected mark-downs in order to clear stock. Consequently, profits for
the full year will be very substantially below last year's result.
Management is of the view that the necessary stock mark-downs have now been
taken and that strategies are firmly in place for the 2002 financial year when
a significant growth in earnings can be expected.
Shareholders will be aware that on 14 December 2000 approval was obtained to
execute a share buy-back in a wholly owned subsidiary. The balance sheet of
Foschini remains extremely strong and management will implement a share buy
back, should they consider this to be appropriate.
Sponsoring brokers:
Lead sponsor
UBS Warburg Securities (South Africa) (Pty) Ltd,
a financial services group of UBS AG
(Member of The JSE Securities Exchange South Africa)
(Registration number 1996/011140/07).
Co-Sponsor
Merrill Lynch South Africa (Pty) Ltd,
(Member of The JSE Securities Exchange South Africa)
(Registration number 95/01805/07).
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