Mr Price Finds Growth as SA Buyers Squeeze, JSE: MRP Share Price Unable to Break Out
Mr Price posted encouraging half-year results driven by steady sales growth, but its share price continues to struggle against technical...
Quick overview
- Mr Price reported a 6.5% increase in half-year earnings, driven by solid retail momentum and a total revenue of R18.6 billion.
- Despite the positive earnings, the company's share price remains under pressure, down 27.62% in 2025, struggling against technical resistance.
- The group announced an interim dividend of ZAR 3.23 per share, reflecting a commitment to shareholder returns amid challenging consumer conditions.
- Management highlighted ongoing macroeconomic pressures, including negative real wage growth, which continue to impact consumer spending patterns.
Mr Price posted encouraging half-year results driven by steady sales growth, but its share price continues to struggle against technical and consumer-driven headwinds.
Mr Price Posts Higher Earnings as Sales Stay Resilient
South African fashion and homeware retailer Mr Price delivered a 6.5% increase in half-year earnings, supported by solid retail momentum. The upbeat results provided a temporary boost to the share price, with JSE: MRP moving higher on Thursday. However, the rally was short-lived, as technical resistance turned the stock away on Friday, preventing a breakout into a renewed bullish trend. Even so, the share ended the week 3.80% higher.
Alongside stronger earnings, the group also reported improved HEPS, a crucial measure of operational profitability, confirming that the business remains fundamentally resilient even in a difficult market environment.
Revenue Climbs, but the Consumer Remains Under Pressure
For the 26-week period ended 27 September 2025, Mr Price reported total revenue of R18.6 billion, representing a 5.4% increase. While this highlights the company’s ability to grow topline sales, management was clear that the wider operating environment remains challenging.
The company pointed to the prolonged stretch of negative real wage growth between 2022 and 2023, which has left a lasting impact on household finances. Reduced disposable income has translated into weaker consumer spending patterns, limiting discretionary purchases.
Although recent reductions in interest rates and easing inflation have offered some short-term relief, this has not been enough to significantly improve consumer confidence or restore stronger spending capacity. According to the group, confidence levels remain subdued, reinforcing a difficult retail backdrop.
Profit Growth and Dividend Commitment
Mr Price announced HEPS of 513 cents for the 26 weeks ended 30 September, up from 481.1 cents in the same period a year earlier, underlining continued progress in profitability.
In addition, Mr Price Group Limited (JSE: MRP) confirmed it will pay an interim dividend of ZAR 3.23 per share on 15 December. Based on this payment, the dividend yield stands at 4.2%, broadly in line with industry norms.
Looking ahead, earnings per share are forecast to expand by 39.3% over the next year. If this materialises, the payout ratio could rise to 47%, which is generally viewed as a sustainable level for a retailer of this size. Notably, annual dividends have grown from ZAR 5.80 in 2015 to ZAR 8.97 most recently, reflecting a compound annual growth rate of around 4.5% across that period.
Share Price Still Trapped Below Key Resistance and Support
Despite the positive operational performance, Mr Price shares have struggled to gain lasting traction. The stock is down -27.62% so far in 2025 and closed Friday at R212. This weakness follows an exceptional performance in 2024, when the share price more than doubled.
MRP Chart Weekly – The 50 SMA Rejected the Price Again 
After peaking above R300, the stock slid through the first quarter of 2025 and attempted a recovery in April. That rebound was halted at the 50-week simple moving average, which has since acted as a persistent resistance level. Last week, that same 50-week SMA once again rejected the price on Thursday, signalling that buyers are still unable to reclaim control of the longer-term trend.
Until that key level is convincingly broken, the share price may continue to gravitate around the R200 zone, even as the underlying business shows signs of steady improvement.
MR Price Interim Earnings Highlights
- Headline earnings per share (HEPS) rose to 513 cents for the 26 weeks ended September 30, up from 481.1 cents in the same period last year.
Revenue and Sales Performance
- Total group revenue increased 5.4% to R18.6 billion (≈ $1.08 billion).
- Group retail sales climbed 5.5% to R17.8 billion.
- This slightly outperformed the comparable market’s 5.3% growth rate.
- The first quarter benefited from shifting school holiday periods, supporting 6.3% retail sales growth.
- The group gained additional market share during this period.
Margin Pressure and June Slowdown
- Heavy discounting in June compressed group profit margins by 20 basis points.
- Both Mr Price and the broader retail sector recorded negative sales growth for that month.
Store Network and Online Performance
- Mr Price now operates over 3,100 stores.
- Store sales increased by 5.4%.
- Online sales outperformed with a growth rate of 9.7%.
Consumer Environment and Cost Pressures
- Despite strong earnings, the group warned that macroeconomic pressures remain a concern.
- Negative wage growth has reduced household disposable income.
- This has resulted in weak levels of consumer expenditure, according to the company.
Dividend Declaration
- An interim dividend of 323.2 cents per share was declared.
- This represents an increase of 6.5% year-on-year
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