One of South Africa’s biggest retailers on the mend
The Foschini Group (TFG) recorded a strong performance in the last three months of 2024, offsetting a poor performance in the first two quarters of its financial year.
TFG owns beloved brands like @home, Jet, American Swiss, Sportscene, and Total Sports and has operations in Africa, the UK and Australia.
In the third quarter of its 2025 financial year, which ended 28 December 2024, TFG saw group sales grow by 8.4%
This is a significant improvement from the 2.0% contraction in sales the retailer recorded in the first two quarters of its 2025 financial year.
The strong third-quarter sales growth means TFG’s year-to-date sales growth is 1.6%, with gross profit up 5.7%.
This quarter also boosted TFG’s market share, with the company now up to 19.8% market share for Q3.
The retailer said its gross margin increased by 210 basis points compared to the prior nine-month period, largely due to full-price sales in the months of November and December 2024.
The third quarter was also a particularly strong month for online sales, which grew by 47.2% in the quarter and by 20.8% year to date.
Online sales now contribute 11.3% to the retailer’s total sales and are driven by its Bash eCommerce platform.
The company’s TFG Africa segment is by far its largest and grew sales by 2.2% in the year to date, contributing 70.8% of total turnover.
The segment’s year-to-date growth was boosted by 5.3% growth in the third quarter.
TFG London, the company’s smallest segment, the acquisition of UK retailer White Stuff boosted its performance.
This saw TFG London increase its sales by 46.5% in the third quarter and by 0.6% on a comparable basis.
TFG acquired White Stuff in October 2024, and, on a stand-alone basis, the UK retailer grew its sales by 18.3% in the third quarter.
“The focus of management continues to be on the protection of gross margin, which has now improved by 200 basis points in FY2025, year to date,” the retailer said.
TFG London contributed 13.7% of total group turnover in the financial year to date.
The retailer did not fare as well in its Australian segment, which was the only segment to contract in both the third quarter and the year to date.
However, there was some improvement in TFG Austalia’s performance in the third quarter, with sales only 0.5% lower, an improvement compared to the 2.4% contraction in the first half of the year.
“Management’s focus on inventory management has also ensured an improvement in gross margin by 80 basis points year to date,” the company said.
Looking ahead, TFG said its outlook for South Africa is positive, with a modest economic recovery expected for 2025.
TFG Africa expects to expand its store estate footprint by opening more than 100 new stores during the 2026 financial year.
In addition, while the UK economy remains under pressure, TFG said it is encouraged by White Stuff’s performance and positive impact on the business.
Also, in Australia, while challenging trading conditions remain, the retailer said the economy appears to be stabilising, and interest rate reductions are expected soon.
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