Fschini Group's overall sales have recovered in the last three months of its 2026 financial year compared with its third financial quarter, where group sales increased 3.5%.
Image: File/ Leon Nicholas
The Foschini Group’s share price increased by a sturdy 2,23% on Friday after it reported an improvement in sales in the last three months of its financial year, despite a tough trading environment in all three of its key markets.
The share price traded at R70,04 on Friday morning, a price that had fallen over 45% from R128,25 on the same date last year.
“TFG’s Africa division sales grew by 7,6% in the fourth quarter to date, reflecting an improvement in performance and partly due to the dissipation of the two-pot retirement funds release in the base," directors of the international apparel and lifestyle brands retailer said on Friday.
Sales for the year to date reflected an increase of 5,2% - online sales and value-added revenues also continued to show significant growth, the group said on Friday in a trading statement for the quarter and the 50-week period to March 14, 2026.
In the six months to September 30, 2025, TFG Africa’s sales had increased by 5,3%. In the third quarter this had fallen to 3,5% growth.
South Africa’s JSE-listed retailers generally reported only low double-digit or single-digit sales growth over the December trading period, traditionally the busiest period for retailers in this country.
TFG’s trading figures were released ahead of the management team's attendance at investor conferences around March 23..
TFG Africa’s gross margin had also normalised since January; however, this had been insufficient to recover margin lost during the year up to and including peak season in the third quarter, as the group had previously disclosed.
TFG London’s sales had grown by 3,4% in UK pounds in the fourth quarter, which now includes White Stuff in the base. Sales have grown by 31% for the year to date and by 0,4%, excluding White Stuff, which continued to perform well, with pro-forma sales growth of 5,2% for the year to date, the directors said.
TFG Australia sales had been flat for the fourth quarter to date, and year-to-date sales had contracted by 1,4% in Australian dollars. In Australia consumers remain cautious and value conscious amid rising costs.
“Geopolitical uncertainty is expected to contribute to elevated input costs and cautious consumer behaviour. The group's diversification and local manufacturing capability within its TFG Africa division provides some resilience, with management actions focused on cost discipline and operational efficiencies to mitigate these headwinds where possible," TFG's directors said.
“The group maintains a sound balance sheet position, supported by committed banking facilities and prudent working capital management. Inventory in the group's largest division, TFG Africa, is expected to close within normal levels.”
The group reported in February that earnings per share are expected to decline by more than 20%. However, there was now a reasonable degree of certainty that both EPS and headline earnings per share would decline by more than 20% from the results of the corresponding prior period.
A further trading statement earnings forecast would be made prior to the release of the annual results, expected to be on June 5.
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