Edgars Stores defies setbacks, revenue up 94, 8%

 By Business Reporter

CLOTHING retailer Edgar’s Stores has seen revenues go up by 94, 8% posting a sound performance despite the obtaining raft of challenges bedevilling the economy.

Presenting the group’s performance for the period that ended January 7 2024, the company said total retail merchandise revenue amounted to ZWL244, 8 billion representing a 94,8% increase from the prior year.

The split between credit and cash sales for the ZWL was 6.9% and 93%, 1% while the US$ sales credit sales contribution of 73% and cash sales of 27%.

During the period, the Edgars chain recorded a turnover of ZWL139,3 billion, up 98.5% from the prior year of ZWL70.2 billion, and the 1,36 million units sold were down 12.99% from 1,58 million in the comparative period. The split between credit and cash sales for ZWL was 8, 7% while the US$ sales had credit sales of 73%.

“Throughout the financial reporting period that ended 7 January 2024, the operating environment was characterized by exchange rate volatility and incessant inflationary pressures. Liquidity challenges in both the local and foreign currencies persisted throughout the year coupled with elevated interest rates, although the cost of borrowing in ZWL declined marginally towards the end of the period.

“Sustained inflationary pressures impacted negatively on disposable incomes resulting in subdued volume sales during the period, compared to prior year,” the company said.

At the Clubhouse Microfinance subsidiary, the US$ loan book closed the year at US$ 1,1 million, a growth of 17% compared to the prior year’s USD0.95 million on the back of the business focus to grow the US$ loan book focusing on less risky loan products.

Asset quality remains positive with 83,6% of the USD book being current. Improved efficiencies in loan approval and disbursement processes have resulted in improved turnaround time for customers.

The Carousel Manufacturing division recorded a turnover of ZWL17,7 billion, up 169,9% on the prior year with total units sold going up  37% to 193.5k (2023: 141.2k).