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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 27 JUNE 2026
' Group retail sales up 45.3%
' African sales growth outperforms RLC growth
' African gross margin expands 40bps
' NKD sales growth outperforms total market and value market
growth in key German market
' Group exits quarter with clean stock levels
During the first quarter from 29 March 2026 to 27 June 2026
("the Period") of the financial year ending 3 April 2027, the
group's retail sales increased by 45.3% to R13.1bn and other
income grew 12.5% to R352m. This performance includes the
contribution from the recently acquired Pegasus Group Holding
GmbH, which trades as the retail business of NKD Group GmbH
("NKD"), effective 31 March 2026. Sales for cash now constitute
91.1% of group sales.
Excluding NKD, retail sales in Africa increased 3.2% to R9.3bn,
exceeding retail sales growth per the Retailers' Liaison
Committee (RLC) of 0.8%. The competitor environment was
promotional during the Period and intensified in June. The
objective of growing sales ahead of the market but not at the
expense of gross margin was achieved, with African gross margin
expanding 40bps.
The retail operating environment in both African and European
markets remained unpredictable. Prolonged geopolitical
uncertainty arising from the US-Iran conflict weighed on
consumer confidence, which remained negative and contributed to
cautious consumer spending.
Inflation rose across both markets, reaching two-year highs in
the two key countries of South Africa and Germany. Higher
interest rates also impacted consumers' disposable income and
willingness to spend on discretionary categories.
Current economic conditions continue to reinforce the resilience
of the value retail sector. The group remains confident that its
portfolio of 16 trading chains is well positioned to outperform
in its respective markets.
Q1 Performance - Mr Price Group excluding NKD (Africa)
The group reported in its FY2026 annual results disclosure that
post-year end trade was challenging in April with some
improvement into May. Africa recorded retail sales growth of
2.7% in these two months combined, against growth in the base
of 11.6%. Trade in June was against a weaker base of -5.1% (prior
year school holiday shift from June to July), and Africa
delivered retail sales growth of 4.3%, ahead of the RLC's decline
of 2.6%. Consumer confidence decreased from -7 index points to
-19 index points, as the realities of the higher inflationary
environment and rising cost of living took effect, impacting
consumer spending.
Total retail sales grew 3.2% to R9.3bn and comparable store
sales were flat. South African retail sales grew 3.5% to R8.6bn
while non-South African corporate-owned store sales decreased
0.3%. Total store sales increased 3.1% while online sales
increased 4.7%, contributing 2.4% of total retail sales.
Retail selling price (RSP) inflation of 1.5% was carefully
managed to protect the customer value proposition in a rising
inflation environment. Total unit sales increased 1.7% to 68.7m.
The store footprint increased by 32 stores (net) and the total
footprint expanded to 3 214 stores. Trading space increased 3.8%
on an annual weighted average basis.
Cash sales, which constitute 87.5% of total retail sales,
increased 3.1%. Credit sales increased 3.8% and the new account
approval rate decreased 50bps to 22.8% as the group continues
to cautiously manage its credit granting in a constrained
consumer environment.
Retail sales for the group's corporate-owned stores excluding
NKD were as follows:
Retail sales Cont. to retail
growth sales
Q1 FY2027 vs FY2026
Apparel segment 3.4% 78.8%
Homeware segment 0.7% 17.3%
Telecoms segment 11.2% 3.9%
Group 3.2% 100.0%
Retail sales in the Apparel segment grew 3.4% compared to the
RLC's flat performance. Comparable store sales increased 0.6%
and unit sales increased 1.9%. All divisions in the segment grew
against double-digit base effects in the months of April and
May, and sales growth improved in June, albeit against a weak
base.
The Homeware segment increased retail sales by 0.7% compared
with the RLC's growth of 5.8%. Comparable store sales decreased
3.3% and unit sales increased 0.2%. Mr Price Home and Sheet
Street, which focus on value seeking customers, competed in a
highly promotional competitor environment. Despite this, their
focus on achieving profitable sales growth enabled the chains
to maintain their GP margins. Yuppiechef, which targets a
higher-income and typically more resilient customer base,
delivered double-digit sales growth against a double-digit base,
and improved their GP margin.
The Telecoms segment increased retail sales by 11.2% against a
double-digit base and GfK market growth of 2.1% (May 2026, latest
available data).
The business exited winter in a clean stock position and
management is comfortable with its closing inventory.
Q1 Performance ' NKD (Europe)
Retail sales (100% cash sales) in Europe totaled R3.8bn.
NKD outperformed both the total apparel market and the value
segment in Germany, which accounts for approximately 60% of its
sales (Textilwirtschaft market share data Q2 CY2026). In
accordance with its space optimisation programme, 21 stores were
closed during the Period, and 23 opened, increasing the total
footprint to 2 156 stores.
The business exited the quarter in a clean stock position and
management is comfortable with its closing inventory.
Management is confident of achieving its annual store growth
targets. NKD management is focused on operational excellence and
delivery of strategic objectives. The process of reducing NKD's
cost of debt is well advanced.
Outlook
The global macroeconomic environment remains uncertain as
geopolitical tensions continue to fluctuate with low
expectations of a near-term resolution. The resultant
inflationary pressures and potential for further interest rate
increases are expected to continue to weigh on consumer
confidence and discretionary spending across the group's key
markets. Trading conditions are therefore expected to remain
challenging and unpredictable over the balance of the financial
year.
Against this backdrop, the group's differentiated fashion-value
merchandise offering, diversified portfolio of 16 trading chains
and broad customer reach position it for sustained growth.
Strong inventory management and disciplined cost control remain
key priorities, supporting the group's objective of delivering
gross margin gains and operating leverage while responding
quickly to changes in the trading environment.
The group is confident in its value-focused operating model and
ability to navigate the current environment. Management remains
focused on disciplined execution, delivering its medium-term
targets and responding appropriately to market conditions as
they change.
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 2026
JSE Equity Sponsor and Corporate Broker
Investec Bank Limited
Date: 23-07-2026 07:05:00
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