Truworths manufacturing unit plans men’s wear line
Tinashe Makichi
Truworths plans to invest in a men’s clothing line at its manufacturing unit, Bravette, as it looks at extending its footprint in a market that is currently dominated by only two players.
Temba Ndebele, Truworths chief executive, said this week that the company was looking at filling the gap that exists in the men’s wear range but foreign currency availability remained a challenge.
“If the equipment was available locally we could have already started the programme, but this is something we are doing out of desperation because there are only two men’s wear factories in the country,” Ndebele said. “Foreign currency also remains a challenge for us to start this project. We shouldn’t even be doing this considering that on the ladies wear line we have not even started or exhausted what we can do.”
Ndebele said they would start off with a basic shirt but would be keen on expanding to Chinos. Chinos are a category of trousers or pants made from the chino fabric, which is a hardwearing cotton (or blend) twill originally produced in China.
Truworths has been exporting to South Africa in particular corporate wear, but Ndebele said the margins had been insignificant and any plan to export to other countries remained a challenge.
“This is because there has been a dwindling of the middle class society across the Southern African region, hence leaving Truworths without a considerable market to service within the region,” he explained.
In its recent financial performance, Truworths merchandise sales for the 26 weeks to January 6, 2019 were 16.6% higher than the comparable period last year. The gross profit margin improved to 59% compared 50.5% in 2018.
Trading expenses, excluding trade receivable costs, increased 11.2% while an operating profit margin of 28.8% was achieved for the period.
The number of active accounts for the company increased 2.7% over the comparative period to 92,820. Trade receivables increased 2.8% as a result of increased sales on credit.
Going forward, Truworths noted that inflationary pressures would continue to erode consumer purchasing power and confidence.
“The impact of the new monetary policy is still to be felt and in the short-term shortages of foreign currency will persist,” the company said. “We will remain focused on productively managing costs and improving efficiencies.”
