HARARE,– Clothing retailer Truworths reported a drop in revenue from $23,1 million to $19,6 million in the full year to July on the back of declining sales.
Sales in the year under review were down 17,7 percent the company reported on Friday.
The group’s clothing retail chains, Truworths, Topics and Number 1 Stores — reported a decrease of 20,5 percent, 18,9 percent and 11 percent in sales respectively.
“Late salary payments resulted in the late settlement of monthly installments, as a result 68.7 percent of the group’s account holders were able to make purchases compared to 81,9 percent in the prior year,” said chief executive officer Bekithemba Ndebele in a statement accompanying company results.
Gross profit margin decreased from 47.2 percent in the prior year to 44,4 percent as markdowns were effected to stimulate sales.
The company incurred a loss of $1 million from a profit of $88 000 last year.
Trading expenses decreased by 4.4 percent to $9,9 million.
The group did not declare a dividend.
Going forward the company said it would focus on containing costs and managing the debtors book.