Mr Price (MRP) - All is not well at Home
Summary
MRP delivered strong results for 1H18 with HEPS growth of 23.6% y-y and a recovery in Apparel sales growth. However, the results did benefit from a soft 1H17 base, and our analysis of longer term volume trends show that units sold in this period were slightly less than that of 1H15, even though space increased by 17% since then. More concerning for us are the trends in the homeware chains, as MRP Home’s units sold have been declining since FY13. This suggests to us that there may some structural challenges in this business.
We note a significant merchandise price gap between MRP and its international retailer competition, and we assess if the lower cost to operate in SA is sufficient to offset the 45% import duties these retailers must pay on all their merchandise (whereas the SA retailers benefit from some local content).
Mr. Price is engaged in the business of omni-channel retail distribution through 1 150 corporate-owned, 15 franchised stores in Africa and its online channels. Co.'s retail chains focuses on clothing, footwear, sportswear, sporting goods, accessories and homewares. Co. operates three reportable segments: The Apparel segment retails clothing, sportswear, footwear, sporting equipment and accessories; The Home segment retails homewares; and The Central Services segment provides services to the trading segments including information technology, internal audit, human resources, group real estate and finance.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.