Mr Price Group has navigated a volatile trading environment to deliver a strong financial performance for the 52 weeks ended 28 March 2026. The group achieved total revenue of R42.7 billion, a 4.2% increase compared to the prior year. A significant achievement for the group was reaching an operating profit of over R6 billion for the first time, maintaining an operating margin of 14.2%.
Segmental performance overview
The group's diverse portfolio demonstrated varied growth across its core retail sectors, driving a total retail sales increase of 4.3% to R41.1 billion. The Apparel segment remains the largest contributor to the group, generating R32.8 billion in retail sales, a growth of 4.2%. This segment represents 79.6% of the total contribution to retail sales.
The Homeware segment achieved retail sales of R6.9 billion, marking a 3.8% increase. This segment accounts for 16.8% of the total contribution to retail sales and managed to maintain performance through disciplined markdowns.
The Telecoms segment was the standout performer, achieving double-digit growth of 10.3% with retail sales reaching R1.5 billion. This segment represents 3.6% of the total contribution to retail sales and expanded its footprint by adding 25 new store-in-store concepts, bringing the total to 86.
Strategic growth and operational footprint
The group's aggressive expansion strategy saw the opening of 196 new stores across its 15 trading chains, increasing total retail space by 3.6%. This growth was supported by a robust cash generation of R8.8 billion from operations, maintaining a cash conversion ratio of 85.8%.
Management has officially welcomed the NKD team into the group as of 31 March 2026, with a primary focus now placed on achieving the guided forecasts previously communicated to investors. Looking toward FY2027, the group plans to invest R1.1 billion in capital expenditure for South African operations, including the opening of approximately 180 new stores, store revamps, and technology enhancements. Simultaneously, the NKD business is projected to invest 24 million Euros to facilitate an expansion of 150 new stores.
Dividends and future outlook
Reflecting confidence in the business, the board declared a final cash dividend of 592.8 cents per share, representing a 63% payout ratio of headline earnings. Despite facing ongoing challenges such as global geopolitical tensions and inflationary pressures, management remains committed to the value-retail proposition. By leveraging its agile operating model and disciplined execution, the group is positioned to continue delivering value to its customers while navigating future economic cycles.