FASHION retailer Rex Trueform (Rextru), one of the more conservative family-controlled companies on the JSE, has made a move to market its wares online.
At the weekend, Rextru disclosed it was selling its fashion lines through the Zando website. CEO Catherine Radowsky said the move was part of the company’s strategy towards servicing a larger customer base.
"It is showing signs of potential," she said.
Rextru trades mainly through its Queenspark chain, which increased turnover 6.5% to R286m.
Gross profit margins shifted up to 55% (previously 54.8%), which pushed Rextru’s operating profit up 7.4% to R14.9m.
Looking ahead, Ms Radowksy said the clothing retail market was expected to remain under pressure.
She said the cost of imported goods was subject to the weakening of the rand.
"Going forward, the weaker rand will likely put pressure on gross margins," she said.
Fortunately, Rextru has a sturdy balance sheet with a cash pile of more than R90m, which is equivalent to about 450c per share.
The company also has ambitions to invest in properties located in Salt River in Cape Town.
Picture: THINKSTOCK
FASHION retailer Rex Trueform (Rextru), one of the more conservative family-controlled companies on the JSE, has made a move to market its wares online.
At the weekend, Rextru disclosed it was selling its fashion lines through the Zando website. CEO Catherine Radowsky said the move was part of the company’s strategy towards servicing a larger customer base.
"It is showing signs of potential," she said.
Rextru trades mainly through its Queenspark chain, which increased turnover 6.5% to R286m.
Gross profit margins shifted up to 55% (previously 54.8%), which pushed Rextru’s operating profit up 7.4% to R14.9m.
Looking ahead, Ms Radowksy said the clothing retail market was expected to remain under pressure.
She said the cost of imported goods was subject to the weakening of the rand.
"Going forward, the weaker rand will likely put pressure on gross margins," she said.
Fortunately, Rextru has a sturdy balance sheet with a cash pile of more than R90m, which is equivalent to about 450c per share.
The company also has ambitions to invest in properties located in Salt River in Cape Town.
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