Edgars Revenue Falls 9.1%, Profit Up Slightly

Rutendo Mazhindu

ZimNow Reporter

Edgars Stores Limited recorded a 9.1% decline in revenue to US$36.98 million for the year ending January 5, 2025, down from US$40.75 million in the previous year, despite posting a modest profit increase.

The fashion retailer’s profit after tax rose to US$854,147, up from US$745,839 last year, while profit before tax dipped to US$800,897 from US$952,027.

“The profit will not translate into a dividend as the group needs to further retool Carousel and strengthen its working capital position,” said chairman T.N. Sibanda.

Merchandise sales dropped to US$30.70 million from US$33.77 million, while operating profit fell to US$3.16 million from US$3.61 million.

Basic earnings per share slightly increased to 0.15 cents from 0.13 cents in the prior year.

The group’s total assets rose to US$33.85 million, up from US$31.61 million, and liabilities increased to US$20.49 million from US$19.10 million, leaving shareholders’ equity at US$13.36 million.

Net cash generated from operations improved significantly to US$2.39 million, compared to a negative cash flow of US$0.88 million last year.

Audit partner Stelios Michael said the group’s use of the Zimbabwe dollar as the functional currency instead of the US dollar resulted in material misstatements in both current and prior financial periods.