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EDGARS CONSOLIDATED STORES LIMITED - TRADING UPDATE FOR QUARTER ENDED DECEMBER
2003
EDGARS CONSOLIDATED STORES LIMITED
"Edcon"
(Reg. No. 1946/022751/06)
(Incorporated in the Republic of South Africa)
Share Code : ECO ISIN Code : ZAE000018388
TRADING UPDATE FOR QUARTER ENDED DECEMBER 2003
Results
Edcon continued to reap the benefits of improved assortments, systems
investments, marketing initiatives, real estate revisions and tight credit
management by delivering a robust sales increase of 15% for December and 21% for
the quarter ended 27 December 2003.
By division, sales were as follows:
Sales
increase
Sales for quarter Retail
increase ended Space
for Dec 2003 27 Dec 2003 Change
Division % % %
Edgars 14 17 1
United Retail 13 18 -1
C N A 26 28 9
Super Mart 40 59 82
Edcon Group 15 21 4
The rand sales growths for the quarter, of 17% at Edgars and 18% at United
Retail, are even more impressive when their respective retail price deflation of
3% and 4% is factored in to calculate unit sales growths. Inventories remained
well managed and significant sales increases were reported in December from most
businesses, but in particular ladieswear, menswear, kidswear and all footwear at
Edgars, and menswear, footwear and boyswear at United Retail. Consequently, the
delivered and projected gross profit percentages remain higher than in the prior
year and moving annual stock turns are over 5 at Edgars and above 6 at United
Retail. Cellular products grew by 21% for the group in December, with the best
performances from Edgars and CNA.
CNA posted a 26% increase on last December; particularly pleasing as last year"s
result was inflated by a massive clearance effort. The re-launched book
department, children"s books and toys, interactive and music were the best
performers. Super Mart"s growth numbers are boosted by the opening of new stores
this year.
Conservative credit granting, state-of-the-art credit systems and extensive
credit expertise, ensured that Edcon"s debtors" book remained in sound
condition. Collections for the quarter were ahead of budget and at billing in
December 2003, 88% of the debtors" book was current and able to buy, versus 85%
in December 2002.
Prospects
Sales growths since the end of December continue to be strong. Based on recent
sales trends and the profit performance for the quarter described above, the
Board is now confident that the growth in headline earnings per share for the
full year to March 2004 will exceed the 73% reported at the interim stage.
Note:
In terms of the JSE Securities Exchange South Africa listing requirements, this
prospects statement is considered to be a profit forecast that required
examination by the external auditors. Consequently, Ernst & Young have reported
that this profit forecast has been properly compiled on the basis of reasonable
assumptions and is consistent with Group Accounting Policies. The full report is
available for inspection at the Registered Office of the company.
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