Major South African retailer takes a hit

Despite growth in sales and revenue, The Foschini Group (TFG) saw a decline in its profit for the first half of its 2026 financial year.

TFG is one of the country’s biggest apparel retailers, with well-known brands like @home, Jet, American Swiss, Sportscene, and Total Sports in its staple. It operates in Africa, the UK, and Australia.

On Friday, 7 November, TFG released its results for the six months ended 30 September 2025, which revealed a mixed performance.

Revenue rose by 12.22% to R31.39 billion, while retail turnover increased by 12.66% to R29.15 billion.

However, the retailer reported that its profit for the period declined by 21.20% to R944 million and its basic earnings per share declined by a similar percentage to 290.8 cents.

This is due to trading conditions that remained challenging across the retailer’s operating segments in Africa, the UK, and Australia, with sales supported mainly by the acquisition of British chain White Stuff.

TFG acquired White Stuff in 2024, which boosted the group’s sales figures compared to the prior year.

“The period was marked by weak and uneven consumer demand in South Africa, particularly in June and September, which impacted margins and profitability,” the retailer said.

TFG Africa, the group’s largest segment, saw 5.3% growth in sales, supported by a strong start to winter trade.

During the period, 47 stores were opened and 42 were closed, with TFG Africa now trading out of 3,619 stores in 6 countries.

TFG’s online sales were a notable standout in these results, up 55.3%, as its Bash eCommerce platform continues to gain momentum.

TFG London, boosted by the acquisition of White Stuff, saw sales up 69%. However, excluding White Stuff, sales only rose by 0.7%.

TFG Australia reported a 0.5% decline in sales, as discretionary spend in the country remained subdued.

TFG declared an interim dividend of 130 cents per share, down 18.8% from its previous interim dividend for the 2025 financial year.