<\/p>\n
The Foschini Group (TFG) says a windfall from two-pot retirement funds in SA released during the final quarter of its 2026 financial year to date has boosted sales by 7.6% for its African division.<\/p>\n
Sales for the year to date now reflect an increase of 5.2%, with online sales and value-added revenues continuing to show significant growth.<\/p>\n
Read: New tax year triggers surge in two-pot claims<\/p>\n
In a trading update and statement on Friday the fashion retailer reported that its gross margin has also now normalised since January, but this is not enough to recover margin lost during the year up to, and including, the peak season in Q3. This includes Black Friday sales in November and festive season sales till just after Christmas.<\/p>\n
While TFG Africa rallied towards the end of the financial year, the other segments came in lower.<\/p>\n
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For TFG London, sales have grown 3.4% (in British pounds) in Q4 to date. This includes clothing brand White Stuff in the base, which was acquired in October 2024. Sales have surged by 31% for the year to date, but dropped to 0.4% when excluding White Stuff.<\/p>\n
Read:
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Pepkor rethinks Investec tie-up as it eyes solo bank startup<\/p>\n
Meanwhile, sales have been flat for the Australian division for the quarter to date. Year to date sales have contracted 1.4% (in Australian dollar).<\/p>\n
As a result, the group has maintained projections of an expected 20% decline in both earnings per share and headline earnings per share for the for the financial year ending 31 March 2026.<\/p>\n
TFG\u2019s management had already warned shareholders of the expected drop in earnings for the overall group in an earlier trading update.<\/p>\n
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Outlook<\/p>\n
The group\u2019s diversification and local manufacturing capability within its TFG Africa division is expected to provide some resilience, with a focus now on cost discipline and operational efficiencies to mitigate against elevated input costs and cautious consumer behaviour amid geopolitical uncertainty.<\/p>\n
\u201cThe group maintains a sound balance sheet position, supported by committed banking facilities and prudent working capital management. Inventory in the group\u2019s largest division, TFG Africa, is expected to close within normal levels,\u201d the retailer said.<\/p>\n
TFG\u2019s share price firmed over 2% on Friday, following the update. However, it is still down almost 10% over the past week, due largely to market volatility, and is 16% down year-to-date.<\/p>\n
#Twopot #spending #boosts #TFG #final #quarter #sales<\/p>\n","protected":false},"excerpt":{"rendered":"
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