The Foschini Group (TFG) reported a 21.3% slide in half-year headline earnings per share (Heps) on Friday, to 292.6 cents, while operating profit slumped almost 10% to R2.3 billion.
This is despite a 12.2% rise in group revenue to R31.4 billion for the six months ended 30 September 2025, amid what the retailer calls a “prolonged period of difficult trading conditions across all regions”.
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TFG, which owns retail chains such as Markham, Jet, @home and Totalsports, lowered its interim dividend from 160 cents per share (cps) in the prior period to 130cps for H1 2026.
The group’s shares weakened over 2.5%, trading at R88 a share by midday on Friday, following the release of its latest results.
TFG’s share price slide for the year-to-date is now more than 47%.
Segmental performance
The group attributed its increase in revenue largely to the inclusion of UK brand White Stuff, which contributed to a 69% rise in segmental sales. Online sales also surged 55.3%, accounting for 14.7% of total group sales.
TFG Africa increased sales by 5.3%, maintaining market share in key Retail Liaison Committee categories, while the beauty division posted a strong 23.6% increase on the back of new product ranges and store expansions.
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Anthony Thunström, TFG CEO, notes that the group remained disciplined in a prolonged and uneven retail environment.
“The macro environment has been tough for longer than anyone anticipated. June and September were particularly difficult months across our markets,” he says.
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Thunström adds that the group is taking deliberate action to manage costs, optimise its store footprint and advance growth platforms such as Bash, womenswear and beauty. “Our focus is stability through this cycle”.
During the review period, the group maintained a conservative balance sheet and returned capital to shareholders through a R1 billion share buyback.
TFG is implementing several measures to boost operational efficiency in the second half of the financial year, including tighter inventory management, a review of discretionary spending and optimisation of trading space.
Outlook
The group expects the second half of the financial year to remain constrained by weak demand and competitive trading conditions.
“Our priority for the remainder of the year is disciplined execution and efficiency,” says Thunström.
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“We will continue to adapt to trading conditions and ensure the group remains well-positioned to capture opportunities as the environment improves.”
Truworths trading update
Meanwhile, fellow Cape Town-based competitor Truworths flagged subdued retail sales in the first 18 weeks (from 30 June to 2 November) of the 2026 financial period in a business update on Thursday.
The stock traded at R53.57 around midday, down 0.7%. However, it has plunged over 48% for the year to date.
Sales at Truworths Africa were 4% lower, while Office UK recorded a 6% increase, supported by its positioning as a leading fashion footwear and top sneaker brand worldwide.
Online sales at Truworths Africa increased 23.3%, contributing 8.3% of the segment’s retail sales (prior period: 6.4%).
The group’s interim results for the 26-week period ending 28 December 2025 are scheduled to be released on or about Thursday, 26 February 2026.
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