Pursuits
Edcon Returns to Profit as Bain Cedes Control of Retailer
- Owner of Edgars, Jet cleared stock ahead of busiest quarter
- Sales declined 6.8% due to slump in purchases using credit
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Edcon Holdings Ltd. returned to profit in the second quarter after debt repayment costs eased following the exit of U.S. private equity firm Bain Capital, while South Africa’s biggest clothing retailer cleared unwanted stock to boost sales during the busy festive period.
Net income for the three months through September was 163 million rand ($11.5 million), the Johannesburg-based owner of the Edgars and Jet chains said in an e-mailed statement on Tuesday. That compares with a 2.1 billion rand loss a year earlier. Cash sales increased 0.8 percent, although a slump in purchases on credit meant total revenue declined 6.8 percent.