June Weakness Drags Mr. Price (JSE: MRP) Share Price 17% Down – Can R200 Hold As Support?
Mr. Price Group posted a 6.3% rise in retail sales for the quarter, but weakness in June and a sliding share price have raised caution...
Quick overview
- Mr. Price Group reported a 6.3% increase in retail sales for the quarter, totaling R9 billion, despite a 5.1% decline in June.
- The company's share price has fallen 16% this summer, closing at R201.93, raising concerns among investors.
- Segment performance was strong, with notable growth in Telecoms and Mr. Price Apparel, while dividends remained steady at R5.935 per share.
- Management cautioned about macroeconomic challenges that could impact consumer spending in the second half of the fiscal year.
Mr. Price Group posted a 6.3% rise in retail sales for the quarter, but weakness in June and a sliding share price have raised caution among investors.
Quarterly Retail Performance
In a trading update released on Wednesday, Mr. Price Group (JSE: MPRJ) reported a solid 6.3% increase in retail sales to R9 billion for the 13 weeks ending June 28. Despite this overall improvement, June proved to be a drag, with sales declining 5.1%—a point of concern for investors who worry that rising prices may be starting to squeeze South African consumers just as the summer season picks up.
Comparable store sales rose 3% across the quarter, while early July trends looked promising. Sales in the first three weeks of July jumped 12.9% year-on-year, and gross profit margins also improved compared to last year. Management emphasized momentum in key areas, with standout gains in Mr. Price Apparel, Studio 88, and Homeware, where comparable growth came in at 6.4%.
Share Price – Technical Breakdown Below R200
Despite encouraging operational data, the stock price of Mr. Price Group has struggled. Shares are down 16% so far this summer, including a sharp 6.28% drop last week, closing Friday at R201.93. After a stellar 2024—where the stock more than doubled—the 2025 performance has been underwhelming. From a high above R300, MPRJ declined through Q1 and briefly bounced in April, only to be rejected at the 50-week simple moving average (SMA). That technical level has since acted as resistance, pulling the price back toward the R200 mark.
As the price now tests support from the 100-week SMA, all eyes will be on whether buyers can defend this key psychological and technical level next week.
Segment Highlights and Dividend Update
The quarter showed healthy diversification across business segments. Telecoms revenue rose 12.7%, while Mr. Price Home and Sheet Street built on earlier momentum. Yuppiechef continued to gain ground, marking its 14th straight month of market share expansion. Comparable sales were up 5.3%, underlining broad-based strength across retail categories.
The group also maintained a steady dividend profile. Shareholders received R5.935 per share on July 7, with R8.97 paid over the trailing twelve months, translating into a 4.1% yield based on a recent share price of R219. Mr. Price’s payout ratio stands at 63% of profits—well within industry norms.
Outlook: A Mixed Picture
Despite upbeat revenue trends and solid dividends, management warned about persistent macroeconomic headwinds. Higher food and fuel costs are likely to weigh on discretionary spending, especially in the second half of the fiscal year. While relatively low inflation and stable interest rates offer some medium-term hope, consumers remain vulnerable.
The key question now is whether improving retail momentum can offset investor concern—or if the R200 level gives way under continued selling pressure.
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