Listed clothing retailer Edgars Stores Ltd Zimbabwe recorded a 22% boost in revenues to $78.1 million (RTGS) in the 52 weeks to January 6, 2019 from $64.1 million previously on the back of higher retail sales.

Edgars Stores chief executive Linda Masterson told analysts this morning that the higher retail sales were driven by panic buying as uncertainty over the local currency held sway last year.

Resultantly, net profit jumped 114% to RTGS$8.5 million (approximately US$2.9 million) compared to the previous year.

Retail sales grew 20.4% during the period despite a 10.6% decline in unit sales.

Masterson said the sales growth experienced during most of the year was negated by depressed sales seen between October and year end.

Cash sales increased 35.5% while credit sales were up 11.6%.

Edgars recorded a 6% increase in new accounts, with 20,145 new accounts opened during the period.

Of the total turnover of $78.12 million, Edgars Chain contributed 55.7% while the Jet Chain contributed 37.1%.

Edgars Chain’s retail sales grew 16.6% despite a 15.1% decline in volumes, performance was driven by store revamps, promotions as well as improved merchandise assortments, but was undermined by sourcing difficulties and low appetite for credit.

Average active accounts were 49.4% of total compared to 55.4% last year. Average sales per square metres fell 12.8%.

At the Jet Chain, sales grew 29.9% during the period under review despite a 6.5% decline in units sold. Sales per square metre fell 3.41%.

While management have indicated that the trading environment will likely remain tight, the group is targeting turnover growth of 35% and profit after tax (PAT) growth of 40% during the current financial year.

The group’s earnings per share rose to 3.29 cents per share from 1.54 cents in the prior year.

The board has declared a dividend of 0.50c. The dividend will be paid on or about 17 May 2019, with shareholders having the option to receive their dividend in cash or as scrip