Truworths International Limited has announced record merchandise sales of R2,72 billion for the 52-week period to June 30, 2004, and forecast headline earnings per share would be 20% to 30% higher than the 86 cents per share reported for 2003.

Truworths said sales were 17,9% more than the total of R2,3 billion in 2003. Comparable store sales increased by 13,5%. During the period, trading space increased by 6,4% through the opening of five Truworths and 20 Identity stores.

The company said buoyant conditions that underpinned trading in the first 26 weeks gained further momentum through the second half of the period. At the interim stage merchandise sales of R1 376.1 million, a 15.2% increase on the corresponding figure in 2003, were reported. In line with management’s positive outlook in the interim report, merchandise sales of R1 342.6 million for the second half reflected a 20.8% increase on the total for the second half of the 2003 year.

For 2003 the group reported a 35% improvement in headline earnings per share. This growth included the benefit derived from an R18.7 million transfer pricing taxation credit, the reversal of a prior year taxation expense. Excluding the effects of this benefit, headline earnings per share of 81,8 cents would have been posted for 2003, against which headline earnings for 2004 are forecast to be more than 30% higher.

The company said that, as anticipated in earlier announcements, earnings for 2004 were not materially impacted by the acquisition of the Young Designers Emporium chain from December 1, 2003.

Truworths’ audited results for the year to June 30 2004 are due to be announced on August 19.