South African listed clothing retailer Woolworths increased sales for the 12 months to June this year by 15,7%, compared with the same period last year. Comparable store sales growth was 9,8%, the company said in a trading update on Friday.
Clothing and Home grew sales by 11,6% in total and 8,3% in comparable store sales, with an average deflation rate of approximately 1% over the period. Food sales grew by 19,5% in total and by 11,4% in comparable store sales with an average inflation rate of approximately 3% over the period.
Sales for the Australian subsidiary Country Road were 9% higher in Australian dollar terms compared with the same period last year, with unit sales growth of more than 30%.
Margins have been impacted by significant one-off costs associated with the transition to the new design processes and timetable, as well as higher markdowns taken to clear winter stocks following an unseasonably warm winter.
Profit is expected to be in line with last year, the group said.
Woolworths is expected to release its full-year results on August 26. — I-Net Bridge