Victoria Falls Stock Exchange-listed clothing retailer Edgars has invested $1.1 million in expanding production capacity, as the group recorded a 19,6 percent surge in sales units in the year ended 4 January 2026.
“This investment is expected to enhance output volumes, reduce fabric waste and further improve cost efficiency, reinforcing the strategic importance of vertical integration within the group,” Edgars chairman Themba Sibanda said in the company’s 2025 annual report.
He said the funds were targeted at “maintaining and expanding production capacity, primarily toward the cutting room solution”.
During the period under review, total units sold increased by 19.6 percent to 2.38 million units, up from 2024’s 1.99 million units.
Revenue from sales of merchandise grew by 11.9 percent to $34.0 million from $30.5 million in 2024, which Sibanda said “reflected improved trading execution, strengthened customer engagement and enhanced merchandise availability”.
In line with the production ramp up, he said “the retooling of Carousel will continue to enhance manufacturing capacity and efficiency, strengthening support to the retail chains and improving margin resilience.”
“Smart procurement, optimal inventory planning and working capital discipline remain key priorities,” he said, adding that “selective store expansion in high-potential locations will proceed in line with the group’s measured capital allocation framework”.
The group’s US dollar retail debtors’ book closed at $12.6 million up from $11.6 million in 2024, representing growth of 8.6 percent year-on-year.
Active US dollar-denominated accounts increased to 83.7 thousand, compared with 81.3 thousand in 2024, while credit limit utilisation improved to 30.6 percent from 16.8 percent in the prior year.
Sibanda said: “The group will continue refining its segmented retail propositions to ensure each brand remains aligned with evolving customer needs and purchasing patterns.”
The group posted a $2.3 million profit before tax, significantly up from $0.8 million in the prior year, a performance he said demonstrates the positive impact of operational efficiencies, and improved trading volumes.
Finance costs increased to $3 million, compared with $2.4 million in 2004.