Wrap Text
Summary of the interim results for the half-year ended 30 September 2025, ordinary & preference dividend declaration
THE FOSCHINI GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1937/009504/06)
LEI: 3789PTO7LG718IG59F97
JSE / A2X share code: TFG
Ordinary share code: TFG
ISIN: ZAE000148466
Preference share code: TFGP
ISIN: ZAE000148516
("TFG" or "the Company" and together with its affiliates "the Group")
SUMMARY OF THE UNAUDITED INTERIM CONDENSED CONSOLIDATED RESULTS FOR THE HALF-YEAR
ENDED 30 SEPTEMBER 2025, ORDINARY AND PREFERENCE DIVIDEND DECLARATION
SALIENT FEATURES
- Group revenue up 12,2% to R31,4 billion;
- Group sales grew 12,7% to R29,2 billion (3,5%^ excluding White Stuff);
- Group online sales grew by 55,3%, now contributing 14,7% to total retail sales (H1 FY2025: 10,7%), with the
acquisition of White Stuff. TFG Africa online sales grew by 40,2% driven by our Bash platform;
- Group gross profit up 12,3% to R14,4 billion;
- Group gross margin contracted by 20 basis points, to 49,3%;
- Operating profit 9,9% lower to R2,3 billion;
- Basic earnings per share (EPS) 21,0% lower at 290,8 cents and Headline earnings per share (HEPS) 21,3%
lower at 292,6 cents;
- Market share in South Africa was maintained in Apparel, and in Homeware grew by 20 basis points compared
to H1 FY2025, according to the Retail Liaison Committee ("RLC");
- Interim dividend declared of 130,0 cents per share (Sept 2024: 160,0 cents per share), a decrease of 18,8%;
and
- As at 30 September 2025, 3 420 485 ordinary shares repurchased for a total consideration of R377 million.
GROUP FINANCIAL PERFORMANCE
Trading conditions remain challenging across Africa, the UK, and Australia with sales growth of 12,7% supported
mainly by the acquisition of White Stuff. In Africa, market sales declined sharply in June and September, with gross
margins pressured by clearance activities to liquidate remaining winter stock after slower sales. In the UK and
Australia, continued cost-of-living pressures contributed to subdued sales and margin contraction in the first
quarter, before both exhibited a consistently improving trend through the second quarter.
Overall, the Group experienced negative operating leverage as a result of the subdued sales growth and gross
margin contraction, despite maintaining tight cost control.
Finance costs increased by 14,5%, primarily due to the acquisition of White Stuff, which performed well
throughout the period.
Pre-IFRS16 net debt ended the period R2,5 billion^ higher than at H1 FY2025 due to the R1,0 billion acquisition of
White Stuff, the R0,5 billion share buyback, and higher inventory levels.
In accordance with the general authority granted by shareholders at the Company's annual general meeting held
on 4 September 2025, the Company, through a wholly-owned subsidiary, has repurchased 9 675 591 ordinary
shares in the aggregate (2,98% of the number of shares in issue), at an average price of R105,87 per share, and a
total consideration of R1,0 billion. As at 30 September 2025 the Company had repurchased 3 420 485 ordinary
shares, at an average price of R110,17 per share and a total consideration of R377 million. The TFG Board believes
that TFG shares are trading at a discount to intrinsic value and that the share repurchase will deliver long term
incremental value to shareholders.
Sales growth in each business segment for the six months ended 30 September 2025 was as follows:
Business segment H1 FY2026 Contribution to
Sales Growth Group Sales in ZAR
TFG Africa (ZAR) 5,3% 65,3%
TFG London (GBP)* 69,0% 20,3%
TFG Australia (AUD) -0,5% 14,4%
Group (ZAR)* 12,7%
* Excluding the acquisition of White Stuff (effective 25 October 2024), Group sales grew by 3,5% (in ZAR) and TFG
London sales grew by 0,7% (in GBP)^.
At 30 September 2025, the Group traded from 4 922 stores, with 93 new stores opened and 94 stores closed
during the period.
SEGMENTAL PERFORMANCE UPDATE
TFG AFRICA
Sales growth (in ZAR) per merchandise category was as follows:
Merchandise category H1 FY2026 Contribution to
Sales Growth TFG Africa Sales
Clothing 4,2% 70,8%
Homeware 9,3% 15,0%
Beauty 23,6% 3,4%
Jewellery 0,9% 3,5%
Cellular 3,8% 7,3%
Total TFG Africa 5,3%
Consumer sentiment and discretionary spend in South Africa remained subdued despite moderating inflation and
recent interest rate cuts, with GDP growth of 0,8% in the second quarter of the 2025 calendar year and is now
expected to be no more than 1,1% for the full calendar year.
TFG's market share in South Africa as reported by the RLC was maintained across the Apparel segment, with
Womenswear and Kidswear increasing by 30 and 10 basis points respectively, and Menswear declining by 90 basis
points. In the Homeware category, market share grew by 20 basis points.
Sales grew 5,3%, supported by a strong start to winter trade, though activity softened during June and September
negatively impacting sales.
During the period 47 stores were opened and 42 were closed, with TFG Africa now trading out of 3 619 stores in 6
countries.
Like-for-like sales grew by 4,1% for the period, with online sales growing by 40,2% and now contributing 7,4% (H1
FY2025: 5,6%) to total TFG Africa sales.
Credit sales rose 7,9%, representing 27,4% of total sales, while the debtors book increased 8,0% to R9,0 billion
with stable quality and an increase in provisioning since year end reflective of book growth.
Whilst costs were well maintained, winter clearance markdowns, necessitated by the tougher than expected
trading environment, reduced gross margins by 90 basis points, which resulted in negative operating leverage
leading to a 9,7% decline in segmental EBIT.
TFG LONDON
Sales increased by 69,0% in GBP. Excluding White Stuff, sales grew by 0,7%^ as trade in existing brands continue
to be more adversely affected by the prolonged weakness in the UK economy. However, sales trended consistently
better throughout the period with Q2 growth of 4,5% offsetting the 2,6% contraction in Q1.
During the period 20 stores were opened and 35 were closed, with TFG London now trading out of 684 stores in 13
countries.
White Stuff continues to deliver market-leading performance with sales growing 12,5%^ for the period, and with
the inclusion of White Stuff, TFG London EBIT grew 9,1%.
Management remains focused on the protection of operating profit margin through cost containment and reduction
initiatives. However, the measures could not fully mitigate inflationary pressures. Gross margins decreased by 370
basis points to 64,1%, mainly due to the acquisition of White Stuff which trades at a lower margin.
The strategic acquisition of White Stuff contributed to a 65,5% uplift in store sales, and a 73,8% increase in online
sales. Online sales now account for 43,3% (H1 FY2025: 42,0%) of total TFG London sales, underscoring the
growing strength of our digital channel.
TFG AUSTRALIA
In Australia, sales for the period contracted by 0,5% in AUD, as discretionary spend remained subdued, however
sales trended consistently better throughout the period, with Q2 growth of 1,6% offsetting the 2,8% contraction in
Q1.
During the period 26 stores were opened and 17 were closed, with TFG Australia now trading out of 619 stores in
2 countries.
While store sales declined by 0,6%, online sales were level, contributing 7,7% to total TFG Australia sales.
As a result of expenses growing ahead of sales, driven by costs from new stores and continued inflationary
pressure on expenses, segmental EBIT declined by 18,4%.
OUTLOOK
TFG continues to navigate weak macroeconomic conditions across its key markets.
In South Africa, consumers remain under pressure and despite inflation easing somewhat, subdued GDP growth
and high unemployment remain. In H2 FY2026, we start coming up against the higher base that included last year's
two-pot withdrawals. TFG Africa delivered sales growth of 3,7% for the five weeks ended 1 November 2025.
In the UK, despite continued low consumer confidence, strong performance from White Stuff drove sales growth
of 34,9% (GBP) for the five weeks ended 1 November 2025. Excluding White Stuff, which is not comparable for
the period, sales declined by 0,7%^.
TFG Australia recorded sales growth of 0,6% (AUD) for the five weeks ended 1 November 2025.
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.
^ Non-IFRS measures are in respect of Group and TFG London sales excluding White Stuff and Pre-IFRS 16 net debt – refer to
note 20 of the unaudited interim condensed consolidated financial statements for the half year ended 30 September 2025.
RESULTS PRESENTATION WEBCAST
A live webcast of the interim results presentation will be broadcast at 10:00 am (SAST) on Friday, 7 November
2025. A registration link for the webcast will be available on the Company's website at www.tfglimited.co.za. The
slides for the interim results presentation will be made available on the Company's website prior to the
commencement of the webcast. A delayed version of the webcast will be available later the same day.
INTERIM ORDINARY CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared an interim gross cash dividend of 130,0 cents (104,0 cents
net of dividend withholding tax) per ordinary share for the six-month period ended 30 September 2025.
The dividend has been declared from income reserves.
A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt.
The issued ordinary share capital at the declaration date is 331 027 300 ordinary shares.
The salient dates for the dividend are as follows:
Publication of declaration data Friday, 7 November 2025
Last day of trade to receive a dividend Monday, 29 December 2025
Shares commence trading "ex" dividend Tuesday, 30 December 2025
Record date Friday, 2 January 2026
Payment date Monday, 5 January 2026
Share certificates may not be dematerialised or rematerialised between Tuesday, 30 December 2025 and Friday,
2 January 2026, both days inclusive.
PREFERENCE CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared a gross preference dividend (no. 178) of 3,25% or 6,5 cents
(5,2 cents net of dividend withholding tax) per preference share for the six-month period ending 31 March 2026.
The dividend has been declared from income reserves.
A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt.
The issued preference share capital at the declaration date is 200 000 preference shares.
The salient dates for the dividend are as follows:
Publication of declaration data Friday, 7 November 2025
Last day of trade to receive a dividend Tuesday, 3 March 2026
Shares commence trading "ex" dividend Wednesday, 4 March 2026
Record date Friday, 6 March 2026
Payment date Monday, 9 March 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 4 March 2026 and Friday, 6
March 2026, both days inclusive.
Signed on behalf of the Supervisory Board.
M Lewis A E Thunström
Chairman Chief Executive Officer
Cape Town
7 November 2025
ABOUT THIS ANNOUNCEMENT
Statement and availability
This results announcement is only a summary of the information contained in the full unaudited interim condensed
consolidated results which were approved by the Board of Directors on 7 November 2025. As this announcement
does not contain full details, any investment decisions by investors and/or shareholders should be based on
consideration of the unaudited interim condensed consolidated results, which are available through the JSE
cloudlink:
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/TFG/Int2025.pdf and on the Company's website at:
https://tfglimited.co.za/investor-information/financial-reports-and-presentations/
DIRECTORATE AND STATUTORY INFORMATION
Non-executive Directors:
M Lewis (Chairman), B S M Backman, C Coleman, G H Davin, D Friedland, B L M Makgabo-Fiskerstrand, E
Oblowitz, J N Potgieter, N L Sowazi, R Stein, G C Zondi
Executive Directors:
A E Thunström, R R Buddle
Company Secretary:
D van Rooyen
Registration number:
1937/009504/06
Tax reference number:
9925/133/71/3P
Registered office:
Stanley Lewis Centre, 340 Voortrekker Road, Parow East, 7500, South Africa
Transfer secretaries:
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196, South Africa
Sponsor:
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 07-11-2025 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
