eBusiness Weekly
Michael Tome
HARARE – Clothing retailer, Edgars Stores Limited Edgars recorded a solid financial performance posting a 594 percent jump in profit to $13 million for the half year ending July 2019 from $1,9 million in the prior comparable period last year.
In the period under review the company’s revenue modestly rose to $63 million from $32, 1 million last year translating to a 95.7 percent in the positive.
The company’s store expenses and other operating expense shot up to $8,1 million and $9,6 ,million respectively in the six months from $5,872,100 and $5,708,862 recording a 38,7 percent and 67,7 percent increment.
In a statement accompanying the half year results Edgars chairman, Thembinkosi Sibanda noted that their business recorded a negative unit growth resultant of restrained consumer spending.
“Consumer spending was suppressed, and continues to slow down due to depressed salaries purchasing power.
“Business recorded negative unit growth, with only April and May performing positively in unit terms. In June, positive performance was again negatively affected by the introduction of mono-currency.
“The prevailing liquidity challenges impact negatively on our stocking and growth initiatives while decimated consumer salaries continue to suppress demand,” Mr Sibanda said.
Profit before tax stood at $19, 4 million from $2, 6 million making a 640 percent solid move upwards.
Basic earnings per share had a 553 percent increase, growing to $4.83 from $0.74 last year.
These developments come as Edgars subsidiary, Jet Stores continue to expand its footprint across Zimbabwe after it opened a new branch in Banket a fortnight ago and reopening of Kadoma branch after it was engulfed by an inferno early this year.
