Truworths extends results publication

Business Writer

Listed clothing retailer, Truworths, has been granted the nod to extend publication of its half year financial results for the period to January 08, 2023.

The financial results that were due for publication by on 08 April 2023, have been postponed to 8 May 2023 following approvals by the Zimbabwe Stock Exchange (ZSE).

“The delay is due to necessary work to be completed in order for publication of financial statements that comply with International Accounting Standard 29 – Financial Reporting in Hyperinflationary Economies.

“An extension has been granted by the Zimbabwe Stock Exchange (ZSE) to publish the Reviewed Results on or before 8 May 2023,” said the clothing retailer in a notice to stakeholders.

The group’s half year performance is likely to be in line with or reflective of the business environment during the period under review with a continuation of the prior year period’s challenges.

During the period under review, the market grappled with inflationary pressures resulting in depressed demand due to waning consumer spend.

Overall, the group also anticipates volume performance to be depressed following suspension of the local currency credit sales. The group discontinued credit sales in local currency as the trading environment remained challenging. Resultantly, full year to July 01, 2022 cash sales accounted for 66 percent while credit sales accounted for the remaining 34 percent. However, US dollar credit is considered on a selective basis where there is assurance that the US dollar earnings are guaranteed.

High unemployment levels and low disposable incomes due to inflation had a negative impact on volumes sold, with customers resorting to buying product in the unregulated informal market at prices which the business could not compete against.

The clothing retail business faces stiff competition from the ballooning small to medium enterprises (SME) retailers popularly known as “runners” who sell imported clothing from neighbouring countries at wholesale prices. This is in addition to second hand clothing also flooding the market.