Mr Price Share Price (JSE: MRP) Reverses the Downtrend as Africa Expansion Improves Technical Outlook
Mr Price shares have gained renewed momentum after resilient annual results and a technical breakout above key resistance improved investor confidence in the retailer's long-term growth prospects.
Quick overview
- Mr Price shares have gained momentum following resilient annual results and a technical breakout above key resistance levels.
- The company reported diluted headline earnings per share of R14.11, with normalized earnings showing an 8% increase to R14.89 after accounting for acquisition-related expenses.
- Mr Price is expanding its regional footprint, particularly in Namibia, and has completed the acquisition of the German retailer NKD Group to enhance its international presence.
- The telecommunications division continues to grow, contributing approximately 3.6% to total retail sales and reinforcing the company's diversification strategy.
Mr Price shares have gained renewed momentum after resilient annual results and a technical breakout above key resistance improved investor confidence in the retailer’s long-term growth prospects.
Mr Price Breaks Above Key Technical Resistance
Shares of Mr Price Group have staged a notable recovery after spending nearly eighteen months in a sustained downtrend. After peaking near R300, the stock steadily weakened as South African retailers faced softer consumer spending, elevated interest rates, and persistent macroeconomic uncertainty.
That trend may now be showing signs of reversal. On Thursday, July 2, the stock broke above an important technical resistance level, strengthening bullish sentiment and raising expectations that the recent recovery could develop into a more sustained upward trend. The technical breakout followed a positive market reaction to the company’s annual financial results released earlier in June, which reassured investors that the retailer continues to execute effectively despite a challenging operating environment.
Resilient Earnings Support Investor Confidence
For the financial year ended 28 March 2026, Mr Price reported diluted headline earnings per share (DHEPS) of R14.11, representing growth of 2.4% compared with the previous year.
Although the reported increase appeared modest, earnings were affected by a once-off acquisition-related expense of R217 million associated with the purchase of German discount retailer NKD Group. Excluding this non-recurring cost, normalized DHEPS increased by 8% to R14.89, indicating that the retailer’s underlying operations remained considerably stronger than the headline figures suggested.
The company also maintained its dividend, providing additional reassurance that cash generation remains healthy despite ongoing investment into expansion initiatives and international acquisitions.
Namibia and International Expansion Continue
Mr Price also continued strengthening its regional footprint during the year. Its Namibian operations recorded higher intra-group sales, which increased to N$570 million from N$530 million a year earlier, while administration fee income rose to N$79 million from N$64 million.
The group’s Namibian subsidiary operates several well-known retail brands, including Mr Price, Mr Price Home, Miladys, Sheet Street, and Mr Price Sport, alongside the Studio 88 chain. During the financial year, Mr Price increased its ownership of Studio 88 before completing the acquisition of the remaining stake after year-end, giving the retailer full control of the business.
Internationally, the company also completed the acquisition of Germany-based NKD Group, expanding its presence into Central and Eastern Europe while maintaining operations across several African markets.
Telecoms Business Delivers Another Year of Growth
One of the strongest contributors to the group’s diversification strategy remained its telecommunications division, which includes Mr Price Cellular and Powercell.
Revenue from the segment increased 10.3% year over year to R1.46 billion, while the division generated approximately R150 million in operating profit before finance costs and finance income. Although profitability eased marginally from the previous year, the business continued expanding its customer base and strengthening its competitive position.
Industry data also showed modest market share gains, reinforcing management’s strategy of building complementary revenue streams beyond traditional apparel retailing. The telecoms division now contributes roughly 3.6% of total retail sales and continues to become a more meaningful earnings contributor.
Technical Momentum Improves the Outlook
The combination of resilient earnings growth, continued regional expansion, improving telecoms performance, and successful execution of strategic acquisitions has helped restore investor confidence following a prolonged period of weakness.
While consumers remain under pressure and retail conditions are still competitive, the recent breakout above long-standing technical resistance suggests market sentiment is improving. If Mr Price continues delivering consistent earnings growth and successfully integrates its recent acquisitions, investors may increasingly view the stock as entering a new phase after more than a year of sustained downward pressure.
Share Price Weakness Deepens as Key Technical Levels Break Down
After the company’s solid performance, the market is sending bullish reversing signals. Mr Price shares have almost reclaimed all losses for the year, erasing much of the loses seen in the last two years, after the stock nearly halved in value. Today the shares have climbed above moving averages after buyers pushed above the 200 daily SMA which means that the trend is turning bullish.
MRP Chart Daily – Pushing Above MAs
The chart picture is now improving after deteriorating materially for 17 months: after a failed recovery attempt in April, the stock was repeatedly rejected at the 200-day simple moving average. But we saw a strong push above all MAs. This dynamic confirmed that buyers might be regaining long-term momentum.
MRP Chart Monthly – The 200 SMA Holds Again
The 200-week simple moving average has been holding well as support on the monthly chart, a historically significant support indicator that held during pullbacks in 2020 and 2023. It seems like it is holding again as we’re seeing the beginning of a long term rebound now.
Mr Price Earnings Highlights
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