18 January 2018
LATEST: Bennett in fatal chopper crash?
Polls in '4 to 5' months: Mnangagwa
$430k cocaine woman blames Brazil firm
Tobva tadii paya trio bailed after 3mths
Businessman fleeces clinic of $27,000
Soldiers deployed all over rural Zim: MDC-T
MDC-T’s Mudzuri begs ZCTU for support
Moyo claims CIO spy killed during coup
Bond notes here to stay, says Chinamasa
South Koreans in $70m Zim agro-project
Hubby bashes Star FM anchor in love row
$18/yr subscr too much for musicians
Zimbabwe beat Sri Lanka in thriller
Caps bid to rehire star forward Nhivi
A view beyond the Zimbabwe coup
'Shit-hole': Just Take moral high ground
Economy: the need for a paradigm shift
Trump rage ignores truth: A response

Truworths revenue falls 36pct, considers reducing trading space

12/03/2017 00:00:00
by Source.co.zw

HARARE: The clothing retail group, Truworths last Friday reported a 36 percent drop in revenue for the six months to January 8, 2017, from $12,15 million last year to $7,79 million on the back of waning demand.

Sales of individual chains,Truworths, Topics and Number 1 dropped by 40,3 percent, 43 percent and 4,3 percent respectively.

Trade receivables declined by 2,7 percent on the back of reduced sales on credit, though a 36,8 percent increase in the number of accounts opting for 12 month credit reduced the impact on the decline.

Credit defaults rose in the period.

“The net bad debt experience was worse than the prior year with write offs increasing by 225,6 percent and recoveries reducing by 58,6 percent. All writes offs had been adequately provided for,” said  chief executive Bekithemba  Ndebele.

The company said eight percent of the gross trade receivables was set aside as a provision for bad debts and in monetary terms, provision for bad debts was 23 percent higher than the comparable period last year.

Ndebele said gross profit margin went down from 46,3 percent last year to  38,1 percent on the back of product discounts  to stimulate sales.

Trading expenses, excluding trade receivables costs, fell by 17,2 percent in the period under analysis.

However, the company recorded an operating loss margin of negative 20,2 percent from a 4 percent profit margin achieved in the same period last year and is considering reducing its trading space.

“Trading conditions are expected to remain extremely difficult and the business will have to reduce trading space in line with the trading densities,” said Ndebele.

The outlook remains dim, Ndebele said, adding that foreign currency shortages will negatively impacted product availability and pricing while gross profit margins will remain suppressed by the waning aggregate demand.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker