Clothing boosts Mr Price’s 10.6% sales growth in third quarter

Fashion and homeware retailer Mr Price saw retail sales growth of 10.6% to R14.6 billion for the third quarter of its financial year, which ended on 28 December 2024.

In a trading update released on Wednesday, the retailer said South African retail sales grew 10.8% to R13.6 billion, while non-South African corporate-owned store sales increased by 7.7% to R1 billion.

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Total store sales jumped by 10.6%, while online sales increased by 10.5%. Online sales also contributed 1.8% of total retail sales during the third quarter. The discount retailer said its comparable store sales grew 6.3% for the period.

Read: Mr Price jumps over 6% on more market share gains

The retailer, which also owns branded sneaker stores Studio 88 and high-end homeware store Yuppiechef, said the sales in its clothing division, which contribute 83.4% to the total figure, grew by 10.9%. Meanwhile, its homeware business increased sales by 7.9%.

Mr Price sold more products at full price than in the corresponding period a year ago, improving its gross profit margin.

“A steadily improving consumer environment, aided by decreasing inflation and lower interest rates, continues to build a solid platform for growth compared to recent years,” the company said in a statement.

Cash is king

The group, which now has a footprint of 3031 stores, said its cash sales grew by 11.1%, increasing the contribution to total retail sales to 90.9%. Credit sales also increased 5.7% as credit applications reached an all-time high during the quarter.

“The 2025 economic growth outlook for South Africa is anticipated to improve compared to 2024. A steadily improving consumer environment, aided by decreasing inflation and lower interest rates, continues to build a solid platform for growth compared to recent years,” the retailer said.

However, the retailer noted several global risk events that could dampen growth forecasts. The international political and economic landscapes remain uncertain and could impact inflation and interest rate expectations.

Mr Price’s share price decreased by 2.60% to R262 in morning trade.

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