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Creating stakeholder value
Our approach to value creation is guided by our Business Philosophy through both buoyant and constrained trading conditions, ensuring a consistent focus on long-term value creation.

KEY PERFORMANCE INDICATORS AND TARGETS
FINANCIAL | |||||||
Metric | 2024 Pro forma |
2023 Pro forma |
Medium- term targets |
Local benchmark# |
Global benchmark^ |
Report reference | |
Gross margin | (%) | 52.3 | 52.5 | 49 – 53 | 43.7 | 51.6 | Chief Financial Officer's report |
Operating margin | (%) | 22.0 | 22.2 | 18 – 23 | 12.8 | 11.9 | |
Return on equity | (%) | 36 | 44 | 31 – 36 | 18 | 20 | |
Return on assets | (%) | 24 | 27 | 22 – 27 | 15 | 12 | |
Inventory turn | (times) | 4.3 | 4.2 | 3.5 – 4.5 | 2.8 | 3.5 | |
Asset turnover | (times) | 1.1 | 1.2 | 0.9 – 1.3 | 1.1 | 1.1 | |
Target | |||||||
Return on invested capital | (%) | 25 | 28 | >WACC* |
# | The local benchmarks are based on the average ratios for comparable JSE-listed apparel retailers, being Mr Price Group (year ended 30 March 2024) and TFG (year ended 31 March 2024). |
^ | The global benchmarks are based on the average ratios for listed global fashion retailers (with a 70% weighting to the average), being H&M (year ended 30 November 2023), Inditex (owner of the Zara fashion chain) (year ended 31 January 2024) and Lojas Renner (year ended 31 December 2023) and listed sportswear retailers (with a 30% weighting to the average), being Frasers Group PLC (year ended 28 April 2024) and JD Sports Fashion PLC (year ended 3 February 2024). |
* | Weighted average cost of capital = 15% at June 2024 and 14% at June 2023. |
SUSTAINABILITY | |||||
Metric | 2024 | 2023 | Target | Report reference | |
Board diversity | |||||
Female representation | (%) | 31 | 33 | 30~ | Governance creating value |
Black representation | (%) | 23 | 25 | 30~ | |
Employment equity (South Africa only) | |||||
Female representation | (%) | 76 | 75 | 73* | Truworths Human capital report |
Black representation | (%) | 94 | 94 | 95* | |
Environmental management | |||||
Store electricity carbon emissions | Wh/m2 | 15.52 | 15.72 | 16.00 | Environmental, Social and Sustainability Governance Report 2024 |
~ | Medium-term target. |
* | Target set for 2029. |
Our ability to create value for our shareholders is closely linked to the value we create for our customers and employees, as well as other stakeholders, including suppliers, regulators, lenders, landlords, governments and the broader society in which we trade.
HOW WE CREATE VALUE | HOW WE MEASURE THE VALUE CREATED | |||||||
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SHAREHOLDERS | ||||||||
Our shareholders are the principal providers of financial capital and by delivering sustainable, long-term value, the Group ensures continued access to capital. Refer to our Vision for shareholders. |
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CUSTOMERS | ||||||||
The members of the public who are our customers are the consumers of our products and services, and our primary source of revenue. This revenue-generating capability enables us to ultimately create financial value for shareholders. Refer to our Vision for customers. |
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EMPLOYEES | ||||||||
Through our employees, we strive to create value by meeting our customers' fashion, quality and service needs, and by providing the Group's business support services. Refer to our Vision for employees. |
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OTHER GROUP STAKEHOLDERS | ||||||||
Our broader stakeholder base includes groupings that have a material direct or indirect impact on our business and influence our ability to create value in the long term. |
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