Currently viewing: Review of 2024 and outlook for 2025 | Next: Introducing our 2024 Integrated Report
Review of 2024
RETAIL SALES UP 3.6% TO
R21.4 billion
(2023: R20.6 billion)
GROSS MARGIN
52.3%
(2023: 52.5%)
EXPECTED CREDIT LOSS ALLOWANCE TO ACTIVE TRADE RECEIVABLES
20.3%
(2023: 20.6%)
OPERATING MARGIN
27.3%
(pro forma:
22.0%)
(2023: 24.0%)

HEADLINE EARNINGS PER SHARE DOWN
6.3%
(pro forma: up 1.0%)
NET DEBT REDUCED BY R544 MILLION TO
R306 million
(2023: R850 million)
ANNUAL DIVIDEND PER SHARE DOWN 6.4% TO
529 cents
(2023: 565 cents)
NET DEBT TO EQUITY
3.2%
(2023: 11.1%)
NET ASSET VALUE PER SHARE UP 23.2% TO
2 553 cents
(2023: 2 073 cents)
RETURN ON EQUITY
45%
(pro forma:
36%)
(2023: 48%)
CASH GENERATED FROM OPERATIONS
R4.7 billion
(2023: R3.8 billion)
RETURN ON ASSETS
30%
(pro forma:
24%)
(2023: 30%)
GROUP FINANCIAL PERFORMANCE
GROUP
Cash generated from operations totalled R4.7 billion, with R2.2 billion returned to shareholders through dividends.
All medium-term financial targets were met or exceeded, and the Group’s metrics are currently the highest or equal to the highest when compared to our selected local and international benchmarks.
Contribution from online sales increased from 15% to 18% of total Group retail sales.
Truworths International’s 2023 Integrated Report was ranked 7th in the Ernst & Young 2024 Excellence in Integrated Reporting Awards, the 17th successive year that the Group has been ranked in the top 10 of these awards.
TRUWORTHS — SOUTH AFRICA
Trading impacted by sustained pressure on disposable income and persistently low consumer confidence in the challenging macro environment.
Global shipping challenges and congestion at local ports adversely impacted inventory levels and sales from November 2023 into the early months of the winter 2024 season.
The late onset of winter in South Africa constrained demand for warm winter merchandise, impacting retail sales in the final quarter of the financial period.
The store footprint was expanded and the new Truworths Emporium Re‑imagined concept was introduced in the V&A Waterfront, Constantia Village, Canal Walk and Clearwater Mall stores. Further Identity Megastores, Kids Emporiums and Sync stores were opened.
The business attracted 5.3 million account applications, highlighting the strong demand for Truworths’ premium-quality, aspirational fashion merchandise, with a record of approximately 900 000 new accounts opened.
The new Truworths distribution centre was completed and will be commissioned on a phased basis from November 2024 through to March 2025, by when it is expected to be fully operational.
Refer to the Retail trading environment.
OFFICE — UNITED KINGDOM
Retail trading conditions in the UK remained under pressure due to the decline in real disposable income, high interest rates and modest economic growth.
Office traded well in-store and online as its branded fashion footwear offering proved resilient in the constrained consumer spending environment.
Relationships with key global suppliers were strengthened and new branded footwear partners were introduced into Office and Offspring
Accessibility of the Office brand continues to be a key attraction for customers and brand partners, with its blend of online and stores in key locations and markets.
Continued investment in the store development and remodelling programme with trading space increasing by 11.4% as a net five new stores were opened and three flagship stores were modernised and extended.
Refer to the Retail trading environment.
Outlook for 2025
TRUWORTHS
While consumer disposable income is expected to remain constrained in the short term, recent economic and political developments are positive for the prospects of South African consumers and supportive of a medium-term turnaround in retail spending. The benefits of the more buoyant environment are likely to take time to filter through following many years of muted economic growth.
Interest rate relief, lower inflation, savings withdrawals from the new two-pot retirement system and higher forecast economic growth are all potential catalysts to stimulate consumer spending and improve the outlook for the credit environment.
Truworths aims to sustain growth by focusing on the appeal of its quality, aspirational fashion ranges and the strength of its account portfolio of approximately three million active customers.
Sales growth will be supported by opening new stores and updating store formats, refining the retail concepts launched in recent years, investing in the omni-channel customer experience and driving online sales.
OFFICE
Consumer spending is expected to benefit from lower inflation, possible further interest rate relief and improving consumer confidence.
Office will continue to leverage its unique market positioning, the strength of its relationships with the world’s leading footwear brands and its loyal customer base across the Office and Offspring brands.
Sales growth will be driven by the strong online presence and investment in digital marketing, together with the expansion of Office’s store portfolio through new openings and the remodelling and extension of existing stores in strategic retail locations.