South Africa's TFG reports 12.2% revenue growth in H1 FY26

The group online sales surged 55.3 per cent, now contributing 14.7 per cent of total retail sales (H1 FY25: 10.7 per cent). TFG Africa’s online sales alone rose 40.2 per cent, fuelled by the success of its Bash platform.

While group gross profit advanced 12.3 per cent to R14.4 billion, the gross margin narrowed by 20 basis points to 49.3 per cent. The operating profit declined 9.9 per cent to R2.3 billion due to margin pressure and subdued sales in key markets. Basic earnings per share (EPS) fell 21 per cent to 290.8 cents and headline EPS by 21.3 per cent to 292.6 cents, The Foschini Group Limited said in a press release.

TFG Africa posted 5.3 per cent sales growth, with strength in beauty (23.6 per cent) and homeware (9.3 per cent). Online sales contributed 7.4 per cent of total sales, up from 5.6 per cent a year earlier. Credit sales rose 7.9 per cent, while tighter consumer spending and winter clearance markdowns weighed on profit, driving a 9.7 per cent EBIT decline.

TFG London reported a 69 per cent sales increase in GBP terms, or 0.7 per cent excluding White Stuff. The acquisition boosted store sales by 65.5 per cent and online sales by 73.8 per cent, with digital now forming 43.3 per cent of total London sales. EBIT rose 9.1 per cent, though gross margins fell 370 basis points to 64.1 per cent due to White Stuff’s lower-margin profile.

TFG Australia saw a 0.5 per cent decline in AUD sales amid inflationary pressures and weak discretionary spending. EBIT dropped 18.4 per cent, despite gradual recovery in Q2.

TFG maintained its apparel market share in South Africa and expanded its homeware market share by 20 basis points, according to Retail Liaison Committee data. The company declared an interim dividend of 130 cents per share, an 18.8 per cent decrease from the previous year.

TFG repurchased 3.42 million shares for R377 million during the period, with cumulative buybacks totalling 9.68 million shares (2.98 per cent of shares in issue) at a cost of R1 billion. The board stated the stock trades below intrinsic value and that the buyback would deliver long-term shareholder benefit. At period-end, the group operated 4,922 stores, opening 93 and closing 94.

TFG expects continued macroeconomic headwinds across South Africa, the UK, and Australia. In the five weeks to November 1, 2025, TFG Africa achieved 3.7 per cent sales growth, while TFG London grew 34.9 per cent (GBP), led by White Stuff. Excluding it, sales declined marginally by 0.7 per cent. TFG Australia posted a 0.6 per cent uptick in the same period, added the release.

ALCHEMPro News Desk (SG)