Fashion retailer Truworths forecasts lower annual core earnings

Clothing retailer Truworths International Ltd on Thursday forecast lower annual core earnings and took a 97 million pound ($117.81 million) impairment charge related to its Office shoe chain in Britain.

The South African-listed clothing, shoes, jewellery and homeware retailer said full-year core headline earnings per share were expected to fall between 7% and 9% to between 558 cents and 570 cents.

The group also said its retail sales increased by 3.7% to 18.6 billion rand for the 52-week period ended June 30.

The company said a tough trading environment in Britain because of uncertainty over Brexit, plus pressures on store-based retailing as shoppers move online had hit the profitability of the Office business.

Truworths, last month said Office had entered into debt restructuring talks with its lenders.

The company said trading space for its Office division decreased 5.2% mainly due to the closure of some House of Fraser concession stores.