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Blog2: 17 January 2017 (Operational updates on JSE)
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In today's seconnd blog take a look at some of the trading updates that has been filtering through to the market after the Christmas holiday season. So has it been a festive season to remember or forget? We take a look.
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Festive season not so festive?
Woolworths came out last week stating that headline earnings per share (HEPS) for the half year will come in at around R2.50 per share. Which if extrapolated to a full year would bring full year earnings close to R5 a share. Placing WHL on PE ratio of around 14. Well below the current overall JSE PE ratio. See JSE PE ratio here.
Based on HSP's trading update it looks like their festive season has not been very festive, with same store sales reported as follows:
Sportsmans warehouse -2.3%
Outdoor warehouse 4.3%
With Sportsmans warehouse being the main contributor to HSP's revenues and profits we doubt that their results will be shooting the lights out. While new store sales might add to growth numbers, comparable store growth provides a better indication of how the underlying business is doing. Seems like during tough economic times, kids are not getting new sports equipment
Sportsmans warehouse -2.3%
Outdoor warehouse 4.3%
With Sportsmans warehouse being the main contributor to HSP's revenues and profits we doubt that their results will be shooting the lights out. While new store sales might add to growth numbers, comparable store growth provides a better indication of how the underlying business is doing. Seems like during tough economic times, kids are not getting new sports equipment
Well it looks like things are going swimmingly at Africa's biggest retailer: They had the following to say.
"The Shoprite Group reported excellent growth for the six months to December 2016, increasing turnover by 14.0% from R62.5 billion to R71.3 billion (unaudited). Growth on a like-for-like basis was 8.6%. Sales in the South African supermarket operation continued in the same trend as the first six months of the calendar year and, supported by good festive trading, increased by 10.7%. Growth on a like-for-like basis was 7.4% with internal inflation averaging 7.4% for the period. The Group’s non-RSA supermarkets recorded sales growth of 32.3% assisted by higher inflation and achieved in the face of low commodity prices and forex shortages in certain countries. Growth on a like-for-like basis was 14.2%. Taken at constant currencies, sales grew by 51.7%. The Group’s furniture division grew sales by 10.0% for the period. Credit sales continues to be affected by the changes in the National Credit Act."
"The Shoprite Group reported excellent growth for the six months to December 2016, increasing turnover by 14.0% from R62.5 billion to R71.3 billion (unaudited). Growth on a like-for-like basis was 8.6%. Sales in the South African supermarket operation continued in the same trend as the first six months of the calendar year and, supported by good festive trading, increased by 10.7%. Growth on a like-for-like basis was 7.4% with internal inflation averaging 7.4% for the period. The Group’s non-RSA supermarkets recorded sales growth of 32.3% assisted by higher inflation and achieved in the face of low commodity prices and forex shortages in certain countries. Growth on a like-for-like basis was 14.2%. Taken at constant currencies, sales grew by 51.7%. The Group’s furniture division grew sales by 10.0% for the period. Credit sales continues to be affected by the changes in the National Credit Act."