Wrap Text
Trading Update for the nine months to 28 December 2019
THE FOSCHINI GROUP LIMITED
Reg. No.: 1937/009504/06
Code: TFG
ISIN: ZAE000148466
(“TFG” and “Group”)
Trading Update for the nine months to 28 December 2019
TFG enjoyed a solid November/December trading period, which included a record
high Black Friday for the Group and which is increasingly measured against the
high base that has been created over the past several prior comparative periods.
Subsequent trade continues to be in line with management expectation.
The Group’s consolidated turnover grew 5,9% for the nine months to 28 December
2019 when compared to the same period in the previous financial year with
performances in line with expectations in all regions, apart from TFG
Australia, which continued to exceed expectation.
TFG Africa showed resilience across all merchandise categories and despite the
high base of the past several years, produced turnover growth of 5.9%. This
included a new record high Black Friday performance, which helped to offset the
negative impact of the load-shedding experienced in South Africa during
December. Same store turnover grew by 4.1%. Cash turnover grew pleasingly by
11.2% whilst credit turnover declined by -1,0% as a result of the Group’s
prudent approach to credit in the current constrained economic environment.
TFG London’s turnover declined 1.1% against the backdrop of a very subdued and
disrupted environment, characterized by large store format closures and the
accelerated restructuring of the department store model by owners and lenders,
as well as continued footfall declines on the high street amidst Brexit
uncertainty and generally poor retail sales being reported for the festive
season period. TFG London’s turnover, excluding concession turnover from House
of Fraser (an independently owned UK department store placed under
administration in August 2018), grew by 1,8%^ which is positive given these
circumstances and the fact that this result was achieved without the sacrifice
of margin.
TFG Australia’s turnover grew 11.4% off an already high base. Excluding the G-
Star RAW franchise stores disposed of in December 2018, TFG Australia’s
turnover grew by 15,3%^, with a record high Black Friday performance in
November.
^ Pro forma management account numbers used to calculate an indicative turnover
growth.
Cash turnover now contributes 73,6% to Group turnover.
The turnover growth in each of our business segments was as follows:
Business Currency Total Comparable Contribution
segment turnover to Group
turnover growth
growth turnover
TFG Africa R 5,9% 4,1% 64,2%
TFG London £ (1,1%) N/A* 20,5%
TFG Australia A$ 11,4% 6,5% 15,3%
* TFG London trades, inter alia, through department store concessions. As
concessions by nature change floor space on a continuous basis, a
comparable turnover number is not calculated.
Within TFG Africa, turnover growth in the respective categories was as follows:
Merchandise Total turnover Comparable Contribution
category growth turnover to TFG Africa
growth turnover
Clothing 6,5% 4,4% 73,6%
Homeware 7,8% 5,4% 6,9%
Cosmetics 1,0% 0,0% 4,7%
Jewellery 2,3% 2,4% 6,7%
Cellphones 4,8% 3,8% 8,1%
Shareholders are advised that this trading update has not been reviewed or
reported on by the Company’s external auditors.
PRO FORMA INFORMATION
Pro forma management account information for TFG Australia and TFG London were
used in this announcement for illustrative purposes only to provide an
indicative turnover growth for these business segments.
In TFG Australia, turnover for the period 1 April to 5 December 2018 relating
to the G-Star RAW franchise stores were removed as if the disposal of these
stores took place effective 31 March 2018.
In TFG London, all turnover transacted through House of Fraser were removed to
illustrate the impact of House of Fraser going into administration during
August 2018.
This pro forma information, because of its nature, may not be a fair reflection
of the Group’s results of operations, financial position, changes in equity or
cash flows. There are no events subsequent to the reporting date which require
adjustment to the pro forma information.
The pro forma management account turnover numbers used were:
Year ending Year ended
March 2020 March 2019
A$m A$m % change
TFG Australia for the period 1
April to 28 December 436,3 391,6 11,4%
Less G-Star RAW franchise
stores (1 April 2018 to 5
December 2018) # (13,1)
Comparable TFG Australia 436,3 378,5 15,3%
Year ending Year ended
March 2020 March 2019
£m £m % change
TFG London turnover for the
period 1 April to 28 December 315,3 318,8 (1,1%)
Less turnover through House of
Fraser (1 April to 28 December)
# (16,6) (25,3) (34,4%)
Comparable TFG London turnover 298,7 293,5 1,8%
# The adjustment is based on management accounts. The Group is satisfied with
the quality of these management accounts which are unaudited.
The directors are responsible for compiling the pro forma financial information
in accordance with the JSE Limited Listings Requirements and in compliance with
the SAICA Guide on Pro Forma Financial Information. The underlying information
used in the preparation of the pro forma financial information has been
prepared using the accounting policies in place for the year ending 31 March
2020.
Cape Town
17 January 2020
Sponsor:
UBS South Africa Proprietary Limited
Date: 17-01-2020 12:00:00
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