Johannesburg - Holdsport - which owns outlets such as Sportsmans Warehouse - has bolstered its top and bottom lines, despite a challenging environment.
In the six months to August, the company grew overall sales 11.9 percent to R758 million, its operating profit gained 25.2 percent to R123.7 million and core headline earnings per share moved up 27.1 percent to 221.1c. As a result, it declared an interim dividend of 120c a share - a 41.2 percent improvement on last year.
The listed retailer, which also owns Outdoor Warehouse and the First Ascent and Capestorm brands, says these gains were made despite a “challenging retail environment”.
In a statement issued to shareholders on Friday, Holdsport noted the bulk of its revenue gains came from like-for-like retail sales, which grew 10.5 percent, although it increased its trading area 7.2 percent during the period.
Price inflation was 8.9 percent in the half year.
Sportsmans Warehouse, which trades out of 36 stores, opened two new stores in Hillcrest and George and closed one store in Durban. It will open another store in Secunda in the second half of the year. Like-for-like sales increased 8.7 percent.
The Outdoor Warehouse, which now has 22 outlets, opened a new store in Woodlands and relocated one store in the West Rand in the first half.
In the next six months, it will open a new store in Pietermaritzburg and relocate the store in Alberton. Like-for-like sales increased 16.5 percent.
Performance Brands' external sales were 14.6 percent lower than the previous period, but sales to the group's retail divisions increased 50.6 percent.
Holdsport also noted its results include a foreign exchange benefit of R5.7 million compared to an aggregate loss of R800 000 last year.
IOL