Has the South African Apparel Retail Industry valuation changed over the past few years?

Investors are more pessimistic on the industry, indicating that they anticipate long-term growth rates will be lower than they have historically. The industry is trading at a PE ratio of 8.3x which is lower than its 3-year average PE of 16.4x.

How does South African Apparel Retail compare with similar industries?

There is insufficient data on the sub-industries of this industry.

South African (JSE) Apparel Retail Industry Analysis

Date	Market Cap	Revenue	Earnings	PE
Sat, 28 May 2022	R195.1b	R160.3b	R9.2b	8.3x
Mon, 25 Apr 2022	R204.5b	R160.3b	R9.2b	8.6x
Wed, 23 Mar 2022	R203.5b	R160.2b	R9.1b	17.1x
Fri, 18 Feb 2022	R212.6b	R159.9b	R8.6b	17.5x
Sun, 16 Jan 2022	R202.6b	R159.9b	R8.6b	17.4x
Tue, 14 Dec 2021	R191.4b	R159.9b	R8.6b	13.8x
Thu, 11 Nov 2021	R209.1b	R139.2b	R883.7m	10.6x
Sat, 09 Oct 2021	R198.1b	R139.2b	R770.2m	15.1x
Mon, 06 Sep 2021	R206.2b	R139.2b	R770.2m	15.8x
Wed, 04 Aug 2021	R208.1b	R139.2b	R770.2m	16.8x
Sat, 08 May 2021	R163.5b	R138.7b	-R612,801,000.00	26x
Tue, 09 Feb 2021	R151.5b	R135.2b	-R908,301,000.00	17.8x
Mon, 02 Nov 2020	R117.4b	R132.7b	R307.7m	15.5x
Thu, 06 Aug 2020	R100.3b	R132.5b	R4.0b	13x
Sun, 10 May 2020	R105.9b	R136.5b	R8.1b	13.3x
Sat, 01 Feb 2020	R152.1b	R138.2b	R9.1b	17.3x
Tue, 05 Nov 2019	R162.4b	R138.7b	R9.5b	16.3x
Fri, 09 Aug 2019	R170.1b	R142.7b	R9.7b	15.7x


ZA Market	2.68%
Consumer Discretionary	0.71%
Specialty Stores	2.72%
Apparel Retail	2.50%
Home Furnishing Retail	4.33%
Automotive Retail	4.05%
Home Improvement Retail	2.52%
Computer and Electronics Retail	0%
Specialty Stores	0%

Company	Last Price	7D	1Y	Valuation
PPH Pepkor Holdings	R20.78	4.2% +R3.1b	3.2%	PS15.8x
TRU Truworths International	R53.03	4.8% +R918.3m	-3.7%	PS8.2x
MRP Mr Price Group	R203.63	1.4% +R721.0m	-12.2%	PS17.3x
TFG Foschini Group	R139.40	0.007% +R3.2m	4.5%	PS1.1x

Apr 14

Mr Price Group Limited (JSE:MRP) entered into transaction agreements to acquire 70% of shares of Blue Falcon 188 Trading (Pty) Ltd from RMB Ventures Six (Pty) Ltd for South African Rand 3.3 billion.

Mr Price Group Limited (JSE:MRP) entered into transaction agreements to acquire 70% of shares of Blue Falcon 188 Trading (Pty) Ltd from RMB Ventures Six (Pty) Ltd for South African Rand 3.3 billion on April 12, 2022. The inclusion of the Studio 88 Group would increase Mr Price’s annual revenue to over Rand 28 billion and would prospectively become the group’s second largest of nine trading divisions. Mr Price’s store footprint would increase to more than 2 400 stores and the group would employ over 25 000 people. The Founder of the Studio 88 Group, Laurence Wernars, will continue running the Business, maintaining his strong and trusted management team. The seven senior management team members who are shareholders will remain in their current roles and as shareholders, thereby benefiting from the further growth in the Business. The Purchase Consideration is payable at the time of implementation of the Transaction. Mr Price will acquire 100% of RMB Ventures shareholding in Blue Falcon and management will dispose of an effective 50% of their shareholding, enabling Mr Price to acquire the Sale Shares (“Initial Acquisition”). Management’s retained shareholding will be acquired over a four-year period post implementation of the Transaction, based on the same Historical Multiple as the Initial Acquisition. The Transaction is subject to the fulfillment of both regulatory and commercial suspensive conditions, as are usual for such transactions, by no later than 31 October 2022. These conditions include competition authority approval in South Africa and other African territories. The value of the net assets to be acquired as at 30 September 2021 amounts to Rand 1.6 billion. For the financial year ended 30 September 2021, the Studio 88 Group generated revenue of Rand 5.6 billion and EBITDA of Rand 1.1 billion. The Transaction is subject to the fulfillment of both regulatory and commercial suspensive conditions, as are usual for such transactions, by no later than 31 October 2022. These conditions include competition authority approval in South Africa and other African territories. Investec Bank Limited acted as Financial Advisor, JSE Equity Sponsor and Corporate Broker, Bowmans Inc acted as legal advisor to the Mr Price.

South African (JSE) Apparel Retail Industry Analysis

Industry Valuation and Performance

Industry Comparison

Top Stock Gainers and Losers

Latest News

TFG

Insufficient new directors

TRU

Public Investment Corporation Limited acquired additional unknown stake in Truworths International Limited (JSE:TRU).

MRP

Mr Price Group Limited (JSE:MRP) entered into transaction agreements to acquire 70% of shares of Blue Falcon 188 Trading (Pty) Ltd from RMB Ventures Six (Pty) Ltd for South African Rand 3.3 billion.

PPH

Consensus forecasts updated