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EDGARS CONSOLIDATED STORES LIMITED - TRADING STATEMENT FOR THE QUARTER ENDED
DECEMBER 2004
Edgars Consolidated Stores Limited
`Edcon`
(Reg. No. 1946/022751/06)
(Incorporated in the Republic of South Africa)
JSE share Code: ECO
ISIN Code: ZAE000018388
TRADING STATEMENT FOR THE QUARTER ENDED DECEMBER 2004
The Board is delighted to report ongoing buoyant sales for the 13 week period
ended 1 January 2005. The favourable retail environment supported by low
interest rates, real wage growth and higher consumer confidence extended into
the period. Edcon, with its offerings of well-priced merchandise and
appropriate fashion, delivered an impressive sales increase of 24% for the
quarter, when compared with the same period last year. Gross profit for the
quarter increased by 26%. Group sales for the month of December were 32% higher
than last year which would suggest further market share gains.
By division, sales were as follows:
Sales increase
for quarter ended Contribution Average Retail
Division 1 January 2005 to sales space change Inflation
% % % %
Edgars 22 49 7 (2)
Jet 28 39 6 (20)
CNA 5 7 9 (2)
Boardmans - 2 - -
Jet Mart 1 3 26 (13)
Edcon Group 24 100
The Group`s largest chains recorded an excellent performance, with Edgars` sales
increasing by 22% and Jet`s sales up 28%. All major merchandise businesses
contributed to the success. Even more impressive was that the results were
achieved with deflation in Edgars of 2% and Jet of 20%, while average trading
space increased by 7% in Edgars and 6% in Jet.
Sales in CNA and Jet Mart increased by 5% and 1% respectively, as these chains
worked to improve merchandise assortments and rationalise price points.
Boardmans, in its first festive season as part of the Edcon Group, recorded
sales in line with targets.
Collections from customers for the quarter were strong and Edcon`s debtors` book
remains in a sound condition. At the December 2004 billing, 89% of the debtors`
book was current and able to buy, versus 88% in December 2003.
After a good festive season, stock turns have improved further to 5,6 times from
5,1 times in Edgars and 8,8 times from 6,9 times in Jet. Merchandise is current
and markdown requirements in the next three months should be well within planned
levels.
Based on the sales and profit performances for the quarter, which were
substantially in line with internal plans, the Board is able to reiterate the
earnings guidance it provided in November 2004, namely that: `based on current
estimates, headline earnings per share for the year to March 2005 will be
approximately 60% higher than those reported last year. Seven percentage points
of this increase can be ascribed to the inclusion of the scheduled non
comparable additional trading week.`
In accordance with the JSE Listing Requirement 3.4 (b) (vi) (2), this trading
statement has not been reviewed or reported on by the Group`s external auditors.
Sponsor
Cazenove
13 January 2005
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