Mr Price dropped around R10 billion to grab German discount chain NKD Group and its 2200 stores spread across Europe. The Durban retailer is paying up to €487 million for the cash-focused apparel operation that does business in Germany, Austria, Italy, Slovenia, Croatia, the Czech Republic, and Hungary. CEO Mark Blair framed the purchase as essential for growth and scale.
Investors freaked out and tanked the stock by 13.7% because NKD runs skinny profit margins compared to Mr Price's fat ones. The company lost nearly R6 billion in market value after the announcement. NKD pulled in €91.14 million EBITDA on €1.1 billion sales, which sounds solid until you realize the margins are way thinner than what Mr Price usually posts.
The deal pushes Mr Price past 5000 total stores and marks their fourth major acquisition since 2021 after scooping up Studio88, Yuppiechef, and Power Fashion.
Investors freaked out and tanked the stock by 13.7% because NKD runs skinny profit margins compared to Mr Price's fat ones. The company lost nearly R6 billion in market value after the announcement. NKD pulled in €91.14 million EBITDA on €1.1 billion sales, which sounds solid until you realize the margins are way thinner than what Mr Price usually posts.
The deal pushes Mr Price past 5000 total stores and marks their fourth major acquisition since 2021 after scooping up Studio88, Yuppiechef, and Power Fashion.
