UPDATE 1-South Africa’s Mr Price profit rises in first half on better Q2 sales

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JOHANNESBURG, Nov 21 (Reuters) – South Africa’s Mr Price , a budget fashion and homeware retailer, reported a 7.1% rise in its first-half earnings on Thursday due to improved sales momentum in the second quarter.

Mr Price, which also sells sports clothing and equipment, reported headline earnings per share of 481.8 cents for the 26 weeks ended Sept.28.

It declared an interim dividend of 303.6 cents per share, up 7.1%.

Total revenue rose by 5.2% to 17.6 billion rand ($971 million), with group retail sales growth of 5.1% at 16.9 billion rand.

Sales rose 5.3% in the second quarter, accelerating from the 4.9% growth logged in the first three months of its financial year beginning April.

Comparable store sales, however, inched up 0.4% in the first half.

Mr Price noted macroeconomic positives including no power cuts, increased political stability and the rand’s appreciation, but said “the earnings performance… is reflective of the continued constraint on consumer affordability levels.” ($1 = 18.1243 rand) (Reporting by Nqobile Dludla; Editing by Kim Coghill and Subhranshu Sahu)

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