Truworths flags full-year sales decline

Fashion retailer Truworths International has flagged declines in both full-year sales and headline earnings for its 2026 financial year to the end of June.

In a business update and voluntary trading statement on Thursday for the 52-week period ended 28 June, the JSE-listed group confirmed headline earnings per share (Heps) and basic earnings per share (EPS) are expected to drop by 2% to 4% year-on-year. This comes amid a 0.9% decline in overall group retail sales, to R21.8 billion.

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It highlighted that the brief early-2026 consumer recovery in South Africa and the UK was swiftly disrupted by the Middle East geopolitical conflict, which saw a spike in global oil prices that also hit consumer confidence.

After a subdued first half marked by global trade tensions and cautious household budgets, the second half initially opened on a more constructive footing. In South Africa, moderating inflation, interest rate relief prospects, and a well-received February 2026 national budget pointed toward a rebound in consumer confidence.

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However, external geopolitical shocks quickly altered that trajectory across both primary operating markets – South Africa and the UK.

“Within days, however, this improving outlook was overtaken by external events. The escalation of conflict in the Middle East drove a sharp increase in global oil prices and renewed inflationary pressure, and the higher fuel costs that followed weighed on the disposable income of consumers who had only recently begun to experience some relief,” said Truworths.

“Sentiment weakened across both South Africa and the United Kingdom as the second half progressed,” it added.

It noted that the decline in group sales was influenced in part by currency translation drag as the rand strengthened against the British pound in the second half.

Segment breakdown:

Truworths Africa: Retail sales declined 2.1% to R14.2 billion. While online sales surged 21.5% (contributing 8.1% to segment sales), active account holders able to purchase fell to 77% (down from 79% in 2025), reflecting severe pressure on existing customers’ disposable income. Product price deflation averaged 0.4%.
Office UK: Demonstrated relative market outperformance, expanding retail sales by 4.9% in Sterling to £334.1 million. In rand terms, sales grew 1.3% to R7.6 billion. Online sales accounted for 44.7% of segment turnover, supported by an 8.1% weighted increase in trading space.

Earnings guidance

The group’s financial performance metrics for the 52-week period ended 28 June 2026 are expected to land in the following ranges:

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Metric
2025 Reported (cents)
2026 Estimated range (cents)
Estimated change (%)

Headline earnings per share
752.1
722 to 737
-2% to -4%

Basic earnings per share
745.2
715 to 730
-2% to -4%

Truworths emphasised that despite top-line headwinds, its underlying position is supported by a strong balance sheet, net cash position, prudent credit management, and growing e-commerce platforms.

The group’s audited annual financial results will be published on or about 27 August 2026.

Truworths International’s share price traded marginally lower on Friday, and the stock is down just over 3% for the year to date. Its peer in upmarket fashion retail, TFG, has also come under pressure, with the latter’s share price falling to 2010 levels, albeit due to its own internal issues too.

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