Truworths FY profit rises 16 pct, credit a worry

JOHANNESBURG (Reuters) - South Africa's biggest listed clothes retailer, Truworths, posted an expected 16 percent rise in full-year profit on Wednesday, but warned expensive credit may put pressure on earnings in the coming year.

Truworths, which sells middle- and high-end clothing, said diluted headline earnings per share totalled 517.1 cents in the year to end-June, compared with 447.5 cents a year earlier.

That compares with an average estimate of 519.5 cents in a Thomson Reuters poll of 14 analysts.

Revenue totalled 9.77 billion rand, a 12 percent increase from 8.68 billion a year earlier.

Consumer spending is improving in Africa's top economy thanks to decades-low interest rates and above-inflation wage increases, but the outlook is uncertain due to high personal debt levels and chronic unemployment.

The company said it expected the credit environment to become "more challenging" this year, as credit remains expensive for consumers.

Truworths said it increased trading space by over 6 percent to 569 stores, including new shops in three other African countries.

Shares in Truworths, which have been boosted partly by the company's share buyback programme, are up nearly 40 percent so far this year.

It bought back 1.2 million shares for 83 million rand during the period.

The company also lifted its dividend by 24 percent.

Shares were down 1.3 percent at 102.99 rand following the results at 1336 GMT.

Source: http://news.yahoo.com/truworths-fy-profit-rises-16-pct-credit-worry-134402082--sector.html

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