Earnings release
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Mr Price Group Limited (Registration number 1933/004418/06) Incorporated in the Republic of South Africa ISIN: ZAE000200457 LEI number: 378900D3417C35C5D733 JSE and A2X share code: MRP (“Company” or “group”) VOLUNTARY TRADING UPDATE FOR THE 13 WEEKS ENDED 28 JUNE 2025 During the first quarter from 30 March 2025 to 28 June 2025 (“the Period”) of the financial year ending 28 March 2026, Mr Price Group’s retail sales increased by 6.3% to R9.0bn and comparable store sales grew by 3.0%. Market share gains of 10bps were recorded during the Period as the group outperformed the total comparable market’s retail sales growth, according to the Retailers’ Liaison Committee (RLC). The group has gained more than R300m in market share from competitors over the last twelve months, highlighting the effectiveness of its differentiated fashion-value offering. Group Q1 Performance The group reported in its FY2025 annual results disclosure that in the first two months of FY2026, retail sales grew by 11.6% (April +11.3%, May +11.9%), resulting in market share gains of 20bps. This performance was positively impacted by the timing shift of Easter holidays into April and strong sales growth in May due to a timeous winter season against a weak base of negative sales growth (pre-election consumer restraint in 2024). In June 2025, RLC retail sales for the total market declined. The group recorded a similar trend with retail sales decreasing 5.1% against a firm base of +12.7%. The group’s strong performance in June 2024 was primarily due to the late onset of winter which created pent-up customer demand in the first two weeks of the month and was further buoyed by the sharp rise in consumer confidence following the election outcome. The group anticipated the softer sales growth for June 2025, however the impact of the shift in school holidays from the last two weeks into July was greater than expected. Higher markdown activity was required, which was observed across a highly promotional sector. This was a significant factor in the Q1 Gross Profit (GP) margin decreasing 20bps. The group anticipates its H1 GP margin to remain in line with the prior year.
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The group exited the winter season clean and is comfortable with its closing stock position. South African retail sales grew 6.0% to R8.3bn and comparable sales increased 2.6%. Non-South African corporate-owned store sales increased 10.4%. Total store sales increased 6.3% while online sales increased 7.6%. Online sales contribution grew to 2.4% of total retail sales during the P eriod, with particularly strong growth in the Homeware segment. Other income decreased 2.5% to R312.6m. Group retail selling price (RSP) inflation of 3.1% was well managed to ensure that customers continue to receive superior value and total unit sales increased 3.2% to 67.6m. The store footprint increased by 31 stores (net) and the group’s total footprint expanded to 3 061 stores. Trading space increased 3.7% on a weighted average basis. Cash sales, which constitute 87.5% of total retail sales, increased 6.3%. Credit sales increased 6.1% as the group’s strict credit granting criteria continued. Group July Performance For the first 3 weeks in July 2025 (not included in the results above), retail sales increased by 12.9% at an improved GP margin to the prior year. Segmental performance Retail sales for the group’s corporate-owned stores were as follows: Retail sales in the Apparel segment grew 6.0% during the quarter, gaining 20bps of market share. Comparable store sales for the Period increased 2.6% and unit sales increased 3.2%. Mr Price Apparel and Studio 88 recorded strong double-digit growth in April and May, however sales growth in June was impacted by particularly Retail sales growth Cont. to retail sales Q1 FY2026 vs FY2025 Apparel segment 6.0% 78.6% Homeware segment 6.4% 17.8% Telecoms segment 12.7% 3.6% Group 6.3% 100.0%
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strong base effects for these two chains. Power Fashion continued its trend of delivering double-digit sales growth, and along with Miladys gained market share in all months of the quarter, while Mr Price Sport’s performance momentum continued. The Homeware segment increased retail sales by 6.4% and comparable store sales grew 5.3%. Mr Price Home and Sheet Street continued to build on the improved sales momentum from FY2025 and on a combined basis achieved comparable sales growth of 5.0%. Yuppiechef’s market share continued to expand in Q1, recording 14 consecutive months of gains. The Telecoms segment continued its double-digit sales growth record, increasing by 12.7%. Further market share gains were achieved, up 20bps according to GfK (May 2025, latest available data). Outlook Since the beginning of 2025, global and local business conditions have remained disruptive due to the uncertainty arising from proposed trade tariffs. This has hindered broader economic recovery and continues to cloud the prospects for sustained local growth, as indicated by the reported GDP growth of 0.1% for Q1 2025. The volatility of the domestic economic landscape makes the outlook for the remainder of the financial year likely to be characterised by inconsistent consumer trends. The short-term relief measures of low inflation and interest rates will intersect with an increasingly firm H2 base (two-pot retirement inflows in 2024), as well as rising food and fuel prices which will impact disposable income. Despite this, the group remains optimistic that it can continue to achieve margin accretive market share gains. Annual space growth is anticipated to increase on a weighted average basis by approximately 4% and is expected to continue delivering against the group’s high return thresholds. Sharp focus remains on driving consistent performance by its key growth vehicles in the Apparel and Telecoms segments, while the strategic improvements made on strengthening the Homeware segment have delivered positive progress. These efforts, supported by the group’s fiscal discipline and considered capital allocation framework, give it confidence that
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it can achieve its medium-term targets and continued delivery of sustainable long-term returns. The above-mentioned figures and information contained herein do not constitute an earnings forecast or estimate and have not been reviewed and reported on by the Company’s external auditors. Durban 23 July 2025 JSE Equity Sponsor and Corporate Broker Investec Bank Limited