Retail group Pepkor Holdings, which owns HiFi Corp, Ackermans and Shoe City, said on Thursday that it expected earnings to drop by at least 20% due to the effect of Covid-19 and changes in accounting standards. 
The company said in a trading update that headline earnings per share were likely to decrease by at least 19.4c in the year to end-September from 96.8c previously.

“The impact of the Covid-19 pandemic has impacted the performance in many areas of the group, most notably through lost sales and increased provision levels on credit books,” the company said. 

Pepkor said it had made significant progress in its plans to reduce debt, adding that there was no risk of debt covenants being breached during the period ending September 30.

In morning trade, the company’s share price had dropped 2.31% to R10.57% while it has fallen 41% so far in 2020.