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Shares in Truworths soar as the retailer reports surging growth in sales

by , 06 November 2015

Yesterday, Truworths released its business update covering the 18 weeks to 1 November.

The company showed a sharp rise in sales over the period compared with the same period last year. Truworths appears to be excelling despite a tough economic climate.

Let's take a closer look at what the company revealed…


Truworths shares gained 11%

 
Yesterday, shares in Truworths soared as much as 11% intraday, says Fin24. That’s the “highest level in almost three years”.
 
By market close, the share settled up “8.81% higher at R105,” notes BDLive. This is close to the company’s record high of R114.91, which shares hit at the beginning of 2013.
 
For the period under review, revenue rose 19%, says Bloomberg. That’s up from just 4.7% growth reported for the same period last year.
 
Another positive was a growth in cash sales of 25% against “a 17% gain in credit purchases,” adds Bloomberg.
 

Truworths’ new additions performed well

 
The recent acquisitions of Earthchild and Naartjie also helped boost sales over the period, reports Fin24. Sales grew 25% including these brands, but fall to 16% excluding these sales.
 
Equities analyst with Sasfin Securities, Alec Abraham, told Bloomberg the results were “a big surprise”. He said that after two years of negative volume growth, the company have turned it around. Mr Abraham only expected sales growth to come in at half the reported level.
 
Truworths also saw its gross trade receivables grow 15% to R5.4 billion compared to the same period last year, says BDLive
 
Whilst shares soared yesterday, at time of writing shares are down 1.71% at R103.20.
 
So a positive trading update for Truworths, which is managing to grow sales and revenue despite a tough trading environment.
 
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Shares in Truworths soar as the retailer reports surging growth in sales
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