Mr Price Shares Hit Record as Earnings Rise Amid Consumer Slump

Mr Price Group Ltd. (MPC) advanced to a record high after the South African clothing and furniture retailer said earnings climbed 18 to 22 percent even as household budgets tightened.

The shares rose as much as 2.4 percent to 152 rand, the highest since Bloomberg began compiling data on the company in 1990, and traded 2 percent more as of 3:47 p.m. in Johannesburg. The stock has gained 8.1 percent this year, compared with a 3.7 percent decline in the 11-member FTSE/JSE Africa General Retailers Index.

Earnings per share excluding one-time items advanced as much as 22 percent for the 26 weeks through Sept. 28, compared with 35 percent in the corresponding period a year ago, the Durban, South Africa-based company said in a statement.

Consumer confidence in Africa’s largest economy dropped to a 10-year low in the third quarter as strikes hit the manufacturing and mining industries and gasoline costs soared to a record.

To contact the reporter on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.