Foschini Retail Group, a wholly-owned subsidiary of TFG. Photo: File
The Foschini Group (TFG) saw retail turnover growth of 31% in its second quarter to September 30 compared to the same time a year ago, a solid performance considering the rising financial pressure on consumers in Australia, the UK and in South Africa.
Diluted headline earnings per share were expected to increase between 8% and 28%, to between 423.1c and 501.5c, the group said in a trading statement yesterday.
Consumers continued to head in-store post-Covid, with group online retail turnover subdued in the second quarter, declining by 6.9% compared to the same quarter in 2022, the group said.
Online retail turnover’s contribution to total retail turnover for the quarter was 8.1% compared to 11.4% at the same time last year.
“Overall, the group continued to build on the strong performance of the first quarter,” the group said.
For the six months to September 30, the group delivered growth of 23.5% compared to the same period in 2022.
TFG Africa increased retail turnover growth 22.5% compared to the second quarter of the 2022 financial year.
Like-for-like retail turnover growth for TFG Africa was 6.4%. Cash retail turnover grew 24.3%. Cash retail turnover for the second quarter made up 71.4% of total TFG Africa retail turnover, and 80.8% of total group retail turnover.
The group said there had been continued market share gains in men’s and women’s categories. Retail Liaison Committee data showed market share increased to 16.7% for the first half, compared to 16.4% for the first half of the 2022 financial year.
TFG London continued to perform well with retail turnover growth of 4.4% in the second quarter. The group said TFG London’s performance was “pleasing”, especially the gross margin expansion, and despite the tough economy and high levels of inflation which had seen consumer wallets stretched and spending habits adjusted.
TFG Australia delivered a strong 104.5% (AUD) growth, although the second quarter of last year was affected by Covid-19 closures and restrictions.
The Tapestry Home Brands acquisition was implemented, effective from August 1, and had been incorporated into the results from that date. The further integration of Tapestry would be an area of focus to the end of the financial year.
In the UK, consumers remained under pressure as UK inflation in July 2022 breached double digit growth for the first time since the 1980s.
Australia continued to outperform expectations despite increasing fuel and housing prices, which were driving living costs to record highs.
“Positive retail turnover growth was achieved across all merchandise categories, with Homeware retail turnover growing at 92.8% (including Tapestry). Turnover growth was supported by the expanded “quick response”, local clothing supply chain and sourcing capabilities.
Credit retail turnover for the second quarter grew 18.3%. For the six months ended September 30, credit retail turnover grew by 15.8%.
Overall credit retail turnover continued to be purposefully restricted by more stringent acceptance criteria in line with the current constrained economic conditions.
Online retail turnover from TFG London’s own sites contracted 16.2% in the second quarter compared to the same quarter in FY2022, while retail turnover from third party online channels also declined by 4.1%.
The group said it was making progress on its key strategic objectives and speciality brand business portfolio, which remained well positioned for further organic and inorganic growth.
BUSINESS REPORT
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