The Foschini Group (TFG) has reported a challenging first half of its 2026 financial year, with strong revenue growth offset by a notable decline in profitability across its key markets—South Africa, the United Kingdom, and Australia.
Financial Highlights
- Group revenue rose by 12.2% to R31.4 billion, supported by the acquisition of UK fashion brand White Stuff.
- Basic earnings per share (EPS) fell by 21.0% to 290.8 cents, while Headline earnings per share (HEPS) declined 21.3% to 292.6 cents.
- Operating profit dropped by 9.9% to R2.3 billion, reflecting margin pressure and subdued consumer demand.
- Gross profit increased by 12.3% to R14.4 billion, but gross margin contracted by 20 basis points to 49.3%.
Regional Performance
South Africa
- Sales grew by 5.3%, buoyed by a strong start to winter trading. However, performance weakened in June and September, leading to markdowns that reduced gross margins by 90 basis points.
- Segmental EBIT declined by 9.7% due to negative operating leverage.
- The group opened 47 stores and closed 42, bringing the total to 3,619 stores across six African countries.
- Online sales in South Africa surged 40.2%, driven by the Bash platform.
United Kingdom
- Sales increased by 69.0% including White Stuff, but only 0.7% excluding it.
- The UK economy’s prolonged weakness continued to impact legacy brands.
- Gross margins fell by 370 basis points to 64.1%, largely due to White Stuff’s lower-margin profile.
- Cost containment efforts helped mitigate inflationary pressures, but not entirely.
Australia
- Sales contracted by 0.5% in AUD, as discretionary spending remained weak.
- EBIT declined by 18.4%, driven by inflation and costs associated with new store openings.
Capital Allocation and Shareholder Returns
- TFG declared an interim dividend of 130.0 cents per share, down 18.8% from 160.0 cents in September 2024.
- The board initiated a R1.0 billion share repurchase programme, with R377 million worth of shares repurchased by 30 September 2025.
Outlook
TFG remains cautious about the macroeconomic environment across its operating regions. In South Africa, despite easing inflation and interest rates, GDP growth remains weak and unemployment high, continuing to suppress consumer sentiment.
The group noted that the first half of FY2026 started from a high base due to last year’s two-pot retirement fund withdrawals, which temporarily boosted spending.
TFG stated:
While the first half has been difficult, the Group remains focused on operational resilience, prudent capital allocation, and leveraging its platform strengths and digital channels to drive growth.
| Metric | Interim Results |
| Group revenue | Up 12.2% to R31.4 billion |
| Group sales | Up 12.7% to R29.2 billion (3.5% excluding White Stuff) |
| Group gross profit | Up 12.3% to R14.4 billion |
| Group gross margin | Contracted 20 bps to 49.3% |
| Operating profit | Down 9.9% to R2.3 billion |
| Basic EPS | Down 21.0% to 290.8 cents |
| HEPS | Down 21.3% to 292.6 cents |
| Interim dividend | 130.0 cents per share (Sept 2024: 160.0 cents), down 18.8% |
| Share buyback | 3,420,485 shares repurchased for R377 million as at 30 Sept 2025 |
