EDCON INCREASES SALES BY 30% FOR FIRST QUARTER END
EDCON INCREASES SALES BY 30% FOR FIRST QUARTER ENDED 28 JUNE 2003
EDGARS CONSOLIDATED STORES LIMITED
"EDCON"
(Registration No: 1946/022751/06)
Incorporated in the Republic of South Africa
Share Code: ECO ISIN: ZAE000018388
EDCON INCREASES SALES BY 30% FOR FIRST QUARTER ENDED 28 JUNE 2003
At its 57th Annual General Meeting today, Edcon said that sales for the first
three months of the 2004 financial year have exceeded internal targets.
The Board stated in its year-end results announcement in May, that the trading
momentum in Edgars and United (including Jet, Sales House, Cuthberts and
Smiley"s Wearhouse) chains was expected to continue in the year under review,
but at a somewhat slower pace than that reported for the year to March 2003.
However, this anticipated softening in sales has not materialised. Total sales
through Edgars and United rose by 16% for the quarter, in line with their growth
of 15% reported for the year to March 2003.
CNA and Supermart, both acquired in the second half of the last financial year,
also performed satisfactorily and contributed to a total sales increase for the
Group of 30%.
Particularly pleasing was the strong profit conversion from sales (profit to
sales ratio), which has resulted in attributable earnings running well ahead of
budget. Collections from customers remained robust and the quality of the
debtors" book continued to be healthy in comparison with the previous year.
Winter merchandise will be cleared by the end of July, with promotional and
clearance markdowns for the season expected at a lower percentage of sales than
last year.
Looking forward, the Board remains confident that it will deliver on its
prospects statement for the year ending March 2004, of "another rise in earnings
at a rate well above that of total turnover growth."
On behalf of Edcon
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