December surge powers Mr Price to solid third-quarter sales growth

Mr Price Group reported a solid third-quarter performance, with retail sales rising 3.6% to R15.1 billion for the 13 weeks ended 27 December 2025. Supported by stronger trading momentum in December and continued market share gains in South Africa.

The group said sales growth accelerated in the final six weeks of the quarter, rising 3.8%, with December delivering 5.9% growth against a strong comparative base. It noted that December sales outpaced overall market growth, as measured by the Retailers’ Liaison Committee.

Mr Price’s trading update lands amid continued scrutiny of its proposed R9.7 billion acquisition of German value retailer NKD Group, the group’s first major push into Europe. The deal sparked a sharp December selloff, with the share price dropping more than 15% on the day and leaving the stock down nearly 42% year to date as concerns over the deal’s size and risk intensified.

Mr Price shares opened at R168.50 and were around R172 at midday on Wednesday.

For the quarter, South African retail sales increased 3.9% to R14.1 billion, while non-South African corporate-owned store sales grew 0.6% to R1 billion. Comparable store sales rose 0.5%. Total store sales increased 3.6%, and online sales were up 3.5%, accelerating to 8.3% growth in December.

Cash sales, which accounted for 90.9% of total retail sales, rose 3.7%, while credit sales increased 2.9%. Retail selling price inflation was 5.2%, while total unit sales declined 1.5% to 109 million.

The group’s store footprint expanded to 3 164 outlets, a net increase of 64 stores during the period, with trading space rising by 3.5% on a weighted-average basis.

By segment, apparel sales grew 3.2% and accounted for 83.1% of group retail sales. In December, the apparel segment delivered 6% growth and achieved its highest market share level on record for that month. Studio 88 recorded 7.7% growth for the quarter and 12.3% growth in December.

Read: Mr Price hits 52-week low as NKD questions linger

Homeware sales increased 4.5%, while comparable-store sales rose 1.7%. Yuppiechef continued to perform strongly, growing sales by 10.1% during the period. The telecoms segment delivered the strongest growth, with retail sales up 11%, alongside improved gross profit margins and increased profitability.

Group gross profit margin declined by 20 basis points during the quarter. However, the group said it expects to at least maintain full-year gross profit margins at 2025 levels and indicated it is comfortable with both its cash position and stock levels heading into the fourth quarter.

In the first four weeks of January, Mr Price delivered sales growth of 4.2% against a high comparative base.

Read:
Mr Price digs in on R9.7bn NKD European deal
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