Notes to the financial statements | Note 21

The following table demonstrates the impact on the Group obsolescence provision to a change in value of inventories held, with all other variables held constant:

Inventory at year-end is net of an obsolescence provision of R122 million (2024: R144 million), which is determined on an annual basis. The net movement of R22 million has been included in the cost of sales line item on the face of the statement of comprehensive income.

The provision takes into account expected future sales ability of inventory items based on historical experience, analysis of market and fashion trends and a review of the ageing of the inventory items. There has been no change in the methodology applied in the previous financial year.

Inventory losses recognised as an expense totalled R11 million (2024: R19 million).