First quarter sales were 338 percent higher than the corresponding period in 2020. Picture: Doctor Ngcobo.
First quarter sales were 338 percent higher than the corresponding period in 2020. Picture: Doctor Ngcobo.

Partly franchised retailer Luxe Holdings expected to report lower interim losses

By Edward West Time of article published Oct 11, 2021

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Luxe Holdings (formerly Taste Holdings) said Friday its loss per share was expected to improve by between 66-86 percent to a loss of between 34.8 and 14.4 cents per share for the six months to end-August 2021, compared with a loss of 101.7 cents in 2020.

Luxe Holdings is a partly franchised retail and management group, that operates a portfolio of affordable and aspirational luxury value brands and products serving the broad middle to upper income market. Store chains include NWJ, Arthur Kaplan and Worlds’ Finest Watches.

Directors said, in a trading statement, that same store sales performance for the six-month period were up 60 percent on the corresponding period in 2020, although it was still 8 percent lower than in 2019.

First quarter sales were 338 percent higher than the corresponding period in 2020. However, the third wave of Covid-19, negative consumer sentiment and the rioting and looting in July, impacted on the second quarter recovery, which was down 8 percent compared to 2020, and down 13 percent compared to 2019.

“September results were pleasing at +5 percent compared to 2020 and strong recovery compared to 2019 at +13 percent,” Luxe’s directors said.

The headline loss per share was expected to improve 66-86 percent to a range of 34.8-14.4 loss per share, versus 101.7 cents loss per share in 2020, and a 385.6 cents loss per share in the interim period in 2019.

The headline loss per share of continuing operations was expected to improve in a range of 43-63 percent or a loss of 28.8-18.6 cents per share, from a loss per share of 50.9 cents in 2020, and 60.8 cents loss in 2021.

Luxe’s share price was unchanged at 105 cents, on Friday, having steadily declined from 124 cents over a year.

It’s results for the six-month period ended August 31, 2021, were expectedly due for release, no later than November 10, 2021.

Figures released by Statistics South Africa showed that retail sales overall declined by 11.2 percent in July, compared to the previous month, with the largest declines in household furniture, appliances and equipment, as well as hardware, food, beverages and tobacco products, none of the products that Luxe trades in.

The latest BER Retail Survey also showed that retail sales volumes declined in the third quarter, largely weighed down by clothing and furniture sales, due mainly to lockdown restrictions in the three-month period.

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BUSINESS REPORT ONLINE

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