Investors cheer Mr Price's upbeat trade update

Cape Town - Investors on Thursday cheered Mr Price's upbeat trade update, boosting the share price by more than 4%.

By 10:10 Mr Price shares were changing hands 4.05% firmer at R272.69, after the clothing and homeware retailer recovered from its first earnings drop in 16 years last year.

Mr Price said it expects profits for the year to March 31 2018 to be more than 20% higher than the previous year.

It expects basic headline earnings per share to be 18% to 22% higher at between 1075.5 cents and 1112.0c per share, compared with 911.4c in the previous comparable period.

The expected profit jump comes despite a tough local retail environment, which analysts see as intensifying amid the increase in value-added tax from 14% to 15% from April 1 this year.

The Mr Price Group consists of MRP Home, MRP Sport, Milady's, Sheet Street and MRP Money.

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