* Comparable sales up 15.3 percent
* Clothing unit sales up 25.7 percent
(Adds shares, analyst comment)
By Rebecca Harrison
JOHANNESBURG, Jan 14 (Reuters) - South African fashion and homeware retailer Mr Price Group Ltd reported a 20.3 percent rise in its third-quarter sales as cheap clothing helped it defy a consumer downturn, boosting its shares.
Mr Price said like-for-like sales, which includes sales of expanded stores but not new ones, rose 15.3 percent while prices rose about 6.3 percent during the three months to end December, inflating the top line.
The core clothing unit, which accounted for 72 percent of sales, notched up a 25.7 percent increase and like-for-like growth of 21.8 percent, the company said on Wednesday.
Mr Price shares were up 2.9 percent to 26.75 rand by 0920 GMT, outpacing a weaker Johannesburg All-share index.
"This is a very good set of numbers and shows consumers are still flocking to lower prices and perceived value," said one Johannesburg-based retail analyst. "It seems as though Christmas wasn't the train smash people were expecting."
South African retailers have been struggling as consumers in Africa's biggest economy rein in spending to cope with relatively high interest rates and inflation.
But retailers like Pr Price that target the lower end of the market are faring better than more upscale rivals such as Truworths or Foschini, as hard-pressed customers opt for cheaper products. Inflation has lifted sales.
Mr Price, which said sales rose 21.4 percent in December and 17.5 percent on a comparable basis, is the first clothing retailer to report post-Christmas sales figures.
The figures will be closely watched for signs as to how the South African economy is holding up, as a consumer recession raises pressure on the central bank to cut interest rates.
Latest figures showed retail sales fell for the sixth month in a row in October, likely helping influence the central bank's decision to cut its repo rate by 50 basis points to 11.5 percent in December. Economists expect more rate cuts this year. Africa's biggest supermarket group Shoprite Holdings Ltd reported a 27 percent increase in first-half turnover on Tuesday and its Pick 'n Pay has said Christmas sales exceeded expectations with December sales growth in the "mid teens".
Mr Price said its home division, which represented 28 percent of total turnover, had a tougher time as shoppers cut back on big ticket items. Sales increased 8.2 percent, or 1.7 percent on a comparable basis.
The company said its debtors book was under control, with bad debts in line with the level reported at the end of its first half. (Editing by Dan Lalor)