Dismissals & late salary payments dent Edgars’ profits

Dismissals & late salary payments dent Edgars’ profits

APPAREL retailer Edgars Stores Limited, which also controls the local Jet and Carousel chain stores, reported that retrenchments that plagued industry, especially during the fourth quarter of 2015, including the delayed payments of workers’ salaries during the festive period, led to a 13 percent decline in revenues for the year ended January 9, 2016.

However, while revenues in the Edgars retail chains fell 24 percent from  2014 in the period, turnover in Jet chain stores climbed 23 percent to $19,1 million from $15,6 million a year ago.

The company’s net profit as a result slowed to$4 million from $5,2 million in 2014.

Edgars also notes that despite the deterioration in disposable incomes, “customers have been paying, albeit not as timely as in the past”.

Not surprisingly, total gross write-offs for the year at $2,2 million rose marginally to 4,1 percent of lagged credit sales and 0,6 percent of lagged debtors from 1,9 percent and 0,4 percent respectively.

Since the  group does not expect an improvement in the short-term, it will continue to restructure the business in order to manage costs.

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