Finally, some good news out of Steinhoff. STAR (Steinhoff Africa Retail) speciality fashion and footwear division, which includes Tekkie Town, grew revenue 19.9% and comparable store sales 12.5% in the three months that ended 31 December.
STAR as a whole grew revenue 15.5% to R18.4-bn in the three months ended 31 December 2017. Comparable store sales grew 8.5% in the quarter. And that during the time that the Steinhoff financial scandal erupted.
The speciality fashion and footwear division is headed by former Tekkie Town general manager Bernard Mostert. Their exceptional performance “was supported by strong growth achieved by Tekkie Town and the repositioned retail brands,” STAR reports in a SENS release.
In comparison, the company’s Pep and Ackermans brands reported 6.3% revenue growth and 1.9% comparable sales growth. The stronger Rand had a deflationary effect as lower prices were passed on to customers, the company reports, but strong back-to-school campaigns in January 2018 resulted in higher comparable store sales growth of 4.9%.
In a further fall-out from the Steinhoff financials debacle, former STAR CEO Ben la Grange resigned as non-executive director from the board late in January. He had played an important role in establishing STAR and listing it on the JSE, but as Steinhoff CFO he is implicated in the withdrawal of the company’s financial statements for the past few years. Attorney Louis du Preez has been appointed to the board in his place.