Fundamental Research
Mr Price Group Limited
- In this report, we revisit MRP’s voluntary trading update for 1Q26 (13 weeks ended June 2025), released in July 2025, and assess its implications for our current view. Financial results at a glance:
- During 1Q26, group retail sales were up 6.3% with LFL sales growth up 3% and market share gains of 10 bps were recorded during the period (Retail Liaison Committee; MRP SENS), confirming our outlook of continued long-term growth.
- Examining recent retail sales growth in detail, we consider the current sentiment to be overly pessimistic at this stage. Sales rose by 11.3% and 11.9% in April and May 2025, respectively, with a 20 bps market share gain. While retail sales in June 2025 saw a 5.1% decline against a strong 12.7% growth in the prior year, this may be influenced by seasonality factors like school holidays and base effects, representing just a single month’s data. As such, the market may be placing disproportionate emphasis on this one data point.
- South African retail sales were up 6% with LFL sales up 2.6% in 1Q26. Non-South African sales were up 10.4%.
- Group retail selling price inflation was up 3.1%, which we believe to be supportive and low enough.
- Apparel, homeware, and telecoms segments were up 6%, 6.4% and 12.7% respectively in 1Q26.
Speaker
Pierre MullerThink Big Series