EDGARS CONSOLIDATED STORES LIMITED - TRADING UPDATE
EDGARS CONSOLIDATED STORES LIMITED
("Edcon")
JSE code: ECO
Registration number 1946/022751/06
ISIN code: ZAE000018388
TRADING UPDATE
Edcon`s trading and sales remained buoyant through the festive season with
higher interest rates and double digit inflation not yet impacting performance.
As a result, group turnover for the last quarter exceeded expectations.
December 2002 sales of R1,5 billion were 31% above the same period last year,
while the growth in comparable store sales in the Edgars and United chains was
20% and 24% respectively. United incorporates Jet, Sales House, Cuthberts and
Smiley`s Wearhouse. CNA comparable store performance was down 14%. This was
expected given the group`s strategy to lower ticket prices to clear old stock.
By merchandise category, Edgars` ladieswear, athleticwear, mens` casualwear and
kidswear performed particularly strongly in December, while in United the growth
in ladieswear, footwear, and boyswear exceeded that of the chain. Cellular
products sold well in both chains and recorded an increase of 36% on last year.
For the quarter ended 28 December 2002, Edcon`s sales rose by 29%. On a
comparable store basis, Edgars recorded an increase of 21% and United increased
by 23%.
The gross profit rate was above that reported last year for the quarter in both
Edgars and United and the trading profit conversion for the quarter exceeded
previous estimates.
Closing stocks at the end of December are well below last year`s levels and,
accordingly, markdown activity in the months ahead will be limited. Collections
on debtor accounts in December were gratifying and above internally forecast
levels.
After a particularly pleasing and profitable third quarter, the group is
confident that headline earnings per share for the full year to March 2003 will
comfortably exceed previous record earnings.
7 January 2003
Sponsor
Cazenove
Date: 07/01/2003 03:50:54 PM Produced by the JSE SENS Department
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