Edgars predicts lower wage increases

Clothing retail group Edgars Stores had a five-fold increase in sales during the year ended January 3 despite an acute shortage of cash for most of last year until the introduction of bearers’ cheques in September/October and a strike by its workers towards the end of the year.

It says this year’s sales are likely to be affected by lower wage and salary increases as employers grapple with higher interest rates and reduced margins but its strategies will ensure that it generates satisfactory earnings growth in nominal terms.

Sales increased from $14.9 billion to $83.7 billion. Trading profit grew from $4.8 billion to $38.2 billion with net profit at $21.6 billion, up from $3 billion.

Sales for the group increased by 452 percent while those at Edgars chain grew by 462 percent. Sales at Express were slightly lower at 427 percent while manufacturing beat them both at 507 percent. All three factories had full order books.

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