Mr Price Group raises final dividend 12.7% after market share gains in volatile consumer market

Mr Price Group increased its final dividend a creditable 12.7% to 593.5 cents a share after the value fashion retailer managed to raise its operating profit margin through lower markdowns, increased sales, and market share gains, after a muted first half.

Total revenue increased by 7.9% to R40.9 billion, and the group gained 50 basis percentage points (bps) of market share, as measured by the Retail Liaison Committee. The gross margin expanded 80 bps to 40.5%, and operating profit reached a record level of R5.8bn, with the operating margin increasing 20 bps to 14.2%.

Headline earnings a share increased 10.7% to 1 424 cents, respectively, after a stronger second half. This was despite the weaker month of February for the retail sector and the shift of school holidays and Easter to April, after the financial year-end, from March.

“The first half was challenging for the retail sector but improved in the second half. We are very satisfied to have gained similar levels of market share in both periods, reflecting the value we were able to provide our customers despite very different economic conditions,” CEO Mark Blair said in a statement on Friday.

He said the sales momentum through the second half was supported by strong comparable store sales growth and gross profit margin gains across all trading segments.

Revenue exceeded R40bn for the first time. Group retail sales of R39.4bn increased 7.8%, and comparable store sales increased 3.4%. In the second half, retail sales and comparable store sales accelerated to 9.9% and 5.7%, respectively.

Other revenue increased 6.6% to R1.3bn. Group store sales increased 7.8%, and online sales by 7.9%. Momentum improved in the second half across both sales channels, with sales growing 9.5% and 11.5%, respectively.

Group unit sales increased 3.6% (4.9% in the second half), and retail selling price (RSP) inflation came to 3.7%. The group opened 184 new stores across its 15 trading chains, expanding its total store footprint to 3,030 stores.

Interest rate cuts supported an improving credit environment in the second half, reflected in the group approval rate increasing to 20.3% and peaking at 23.8% in March 2025. Credit approvals would continue to be cautiously managed, the group directors said.

Total expenses increased 10%, which included average space growth of 4.3%. The group’s expenses to retail sales and other revenue ratio of 27.9% was within targeted range.

On the outlook, Blair said a competitive and low-growth economy required the government reform agenda to be accelerated to create higher levels of employment and stimulate economic activity.

He said the consumer environment in South Africa remains volatile. In the short term, consumer relief was supported by low inflation, lower petrol prices, and interest rate cuts, which collectively increased disposable income. Real wage growth experienced some recovery. However, the sustainability of an improving consumer environment in the medium term could be challenging due to the uncertainty from the global and domestic economies.

He said Mr Price Apparel was the most shopped retailer in South Africa according to MAPS. Group retail sales in the first quarter of the 2026 financial year had increased 11.6%, with all trading divisions gaining market share in April 2025.

“Focus remains on extracting maximum value through profitable market share from our 15 trading chains and investment into strategic enablement projects, predominantly in the technology and supply chain functions,” said Blair.

About 200 new stores would be opened in the 2026 financial year. Three acquisitions in recent years had delivered a combined operating profit of R1.2bn in the 2025 financial year and continue to be earnings accretive.

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