LISTED clothing retailer,
The company, in a trading statement for the 13 weeks period ended
"The business is alive to opportunities presented to expand both our brick and mortar and online footprint and develop a resilient business model that will withstand the impact of future shocks and disruptions," Ms Tjeludo Ndlovu, the group's chief executive said.
"Consumer confidence and spending were significantly depressed, resulting in year-to-date turnover falling below forecast by the end of
The group CEO said the company is taking steps to exercise rigorous management of inventory levels, closely monitoring all aspects of the trade receivables portfolio and optimising funding mix to meet the needs of the business.
According to the trading update, group cumulative units sold were 1,6 million as at end of the third quarter, which was 15,5 percent ahead of last year while revenue and EBITDA for the quarter were
"Gross profit margin declined from 63 percent to 46 percent in historical terms compared to the same period last year due to price inelasticity, rising input costs as well as the need for discounting and promotions in order to stimulate sales,"
She noted that as at the end of September, borrowings were
She added that the group had
During the period under review, the group opened two new stores, Jet Mutoko and Jet Hwange which are said to be profitable to date.
In terms of individual business unit performance, Edgars chain unit sales of 243,311 were up 14,7 percent from the second quarter.
At Jet Chain, unit sales of 391,356 were up 15,6 percent from the second quarter while credit sales made up 48,6 percent of the total sales for the quarter compared to 46,5 percent at the end of the second quarter.
"The chain closed September with a stock cover of 11,15 weeks compared to 10,52 weeks in 2020."
The group's financial services finance income was up 21,9 percent in Q3 relative to Q2 on the back of a growing debtors book which increased from
"Active accounts at 37,8 percent have been stable throughout the year but increased relative to prior year while collections remained positive at 32,9 percent of the book compared to 36,7 percent in the second quarter," she said.
Carousel Manufacturing unit sales increased by 47,4 percent to 46,484 from 31,537 recorded in the second quarter.
The group's Micro Finance loan book principal value increased by 41,8 percent to
Interest income was up 34,9 percent from Q2 and 82,1 percent of the book was current at the end of the period compared to 86,2 percent at the end of Q2.
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