MR PRICE GROUP LIMITED - STRONG TRADING CONTINUES IN SECOND QUARTER FOR MR PRICE
MR PRICE GROUP LIMITED
Registration number 1933/004418/06
Incorporated in the Republic of South Africa
ISIN: ZAE 000026951
JSE share code: MPC
STRONG TRADING CONTINUES IN SECOND QUARTER FOR MR PRICE
(Tuesday 01 October 2002) Value retailer Mr Price announced today that further
to its trading statement of 26 July 2002, trading for the second quarter to end
September was also ahead of budget.
The Mr Price Group comprises 763 stores across six chains. These include Mr
Price Weekend Material, Mr Price Home and Sheet Street (the Cash Division) and
Milady`s, The Hub and Galaxy (the Credit Division). Both divisions performed
well in the second quarter.
Trading at the group`s new Chile operation has also continued to improve.
Speaking from Santiago, CEO Alastair McArthur said that the expansion,
relocation and renovation strategy announced at the end of the last financial
year was proceeding well. The results for the 51 stores that have received this
treatment have exceeded expectations in terms of both sales and profits.
"Cash sales have continued at a high 82% of total sales. This has helped to
boost positive cash flows and the group will not be affected by higher interest
rates on borrowings. Stocks at the end of the winter season were clean.
"Inflation rates in the clothing sector have continued to remain relatively low.
This is a consequence of more competitive pricing in this sector and has helped
to keep sales in the sector buoyant. In addition, consumer debt is at relatively
low levels and lower tax rates have boosted spending. Given these favourable
factors, we believe that the effect of the recent rise in interest rates on
consumer spending on clothing and homewares should be largely offset."
McArthur said that good trading to date meant that profits for the half year
were likely to be ahead of budget. "Prospects for a meaningful increase in
earnings for the full year continue to look positive," he said.
ENDS
For further information, please contact Tamra Veley on (021) 426 1233 or 083 251
3658.
Date: 01/10/2002 09:08:00 AM Produced by the JSE SENS Department
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