This article first appeared on GuruFocus .
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Revenue:Increased by 5.4% to 18.5 billion rand.
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Retail Sales:Grew by 5.5%, outperforming the market's growth of 5.3%.
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Gross Profit:Rose by 6.3% to 7.1 billion rand, with gross profit margins increasing by 30 basis points to 40.0%.
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Operating Profit:Increased by 5.7% to 2.1 billion rand.
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Net Finance Expenses:Decreased by 4.9%, with interest expenses at 297 million rand.
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Profit Before Tax:Grew by 7.7% to 1.8 billion rand.
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Profit After Tax:Increased by 7.3% to 1.3 billion rand.
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Headline Earnings Per Share (HEPS):Up by 6.5%.
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Cash and Cash Equivalents:Increased to 3 billion rand, up 38% from the previous year.
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Store Growth:Added 91 new stores, bringing the total to 3,100 stores.
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Apparel Segment Sales:Grew by 5.3%, with operating profit growth of 12.3%.
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Homeware Segment Sales:Increased by 5.1%, with operating profit growth of 12%.
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Telecom Segment Sales:Grew by 12.4%, with operating profit growth of 16.8%.
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Capital Expenditure (CapEx):Totaled 574 million rand for the first half, with a full-year target of 1.5 billion rand.
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Credit Sales:Grew by 4.3%, contributing 11.8% to total sales.
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Net Bad Debt Ratio:Slightly increased to 8.9%.
Release Date: November 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Mr Price Group Ltd ( MRPLY ) achieved a revenue growth of 5.4% to 18.5 billion, with retail sales up 5.5%, outperforming the market's growth of 5.3%.
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The company maintained a strong cash position with cash and cash equivalents growing to 3 billion, up 38% from the previous year.
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The apparel segment, contributing 78.5% of retail sales, grew 5.3% and outperformed the competitive market, which grew only 4.7%.
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Mr Price Group Ltd ( MRPLY ) expanded its store network by adding 91 new stores in the first half, contributing to a weighted average space growth of 3.5%.
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The company reported a gross profit margin increase of 30 basis points to 40.0%, driven by gains across all trading segments despite a highly promotional environment.
Negative Points
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Consumer confidence remained negative, and household expenditure growth was subdued, impacting overall sales performance.
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The company faced challenges from a highly promotional retail environment, which could pressure margins if competitors continue aggressive discounting.
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Credit sales growth was slightly behind cash sales growth, and the net bad debt ratio increased to 8.9% due to a deteriorating consumer environment.
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The homeware sector, while showing profit growth, continued to experience market share losses.
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The company is cautious about pushing credit aggressively due to past experiences with consumer credit health issues, which could limit growth in this channel.
Q & A Highlights
Q: With the sales environment being softer due to consumer challenges, do you have the same cost levers to pull in H2? A: Praneel Nundkumar, CFO, stated that cost control remains a priority, aiming to keep expenses within the medium-term target range of 27.5% to 28.5% of RSOI. The company is closely monitoring sales growth and managing inventory effectively to maintain this range.
Q: How should management approach markdowns if demand is soft during the festive season? A: Mark Blair, CEO, emphasized the importance of managing stock effectively to avoid carrying excess inventory into the new year. The company aims to maintain its fashion value proposition and will adjust stock flow and commitments based on market trends to protect margins.
Q: Can you provide some color on annual GP margin expectations and the impact of recent rand input prices? A: Praneel Nundkumar, CFO, noted supportive factors for GP margins such as lower oil and cotton prices, and reduced shipping rates. However, the promotional market environment could impact margins. The company aims to maintain GP margins within the medium-term target range of 40% to 42%.
Q: What is the company's strategy regarding space growth and expected returns? A: Mark Blair, CEO, mentioned that the company targets space growth of around 3% to 4%, contingent on store performance and available quality space. The company is committed to expanding where returns meet internal thresholds, ensuring capital is allocated effectively.
Q: Is there an opportunity to push credit more aggressively into 2026 given the current credit environment? A: Praneel Nundkumar, CFO, stated that while the approval rate has improved, the company remains cautious about aggressively pushing credit due to past experiences and current consumer credit health. The focus remains on managing risk and monitoring consumer affordability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
