Truworths: Credit sales down in first half

140915 Truworths is in preliminary talks to acquire UK based footwear retailer Office Retail Group Limited for an undisclosed amount.Photo Nicholas Rama

140915 Truworths is in preliminary talks to acquire UK based footwear retailer Office Retail Group Limited for an undisclosed amount.Photo Nicholas Rama

Published Aug 19, 2016

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Johannesburg - Fashion retail group Truworths International said yesterday that credibility assessment regulations had hurt credit sales with a loss of R250 million in the year to June.

Truworths chief executive Michael Mark said credit affordability assessment regulations introduced in South Africa by the National Credit Regulator in September last year had a significant impact on the group’s credit sales.

“The onerous administrative burden for customers to produce proof of income has resulted in the new account acceptance rate falling from 30 percent to 24 percent, with a loss of approximately R250m in credit sales during the reporting period,” Mark said.

Truworths said adjusted diluted headline earnings a share rose by 16.2 percent to 688.2c in the year to June as the group benefited from the acquisition of UK fashion footwear chain Office Retail Group in December.

Trading conditions in the UK were challenging owing to unseasonable weather patterns, a general slowing in the economy and uncertainty ahead of the Brexit vote in June.

BUSINESS REPORT

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