Wrap Text
Summary of the unaudited interim condensed consolidated results for the half-year ended 30 September 2026, ordinary and preference dividend declaration, and changes to the board
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 2026, ORDINARY AND PREFERENCE DIVIDEND DECLARATION, AND CHANGES TO
THE BOARD
SALIENT FEATURES
- Group revenue increased by 0,1% to R31,4 billion;
- Sales declined by 0,4% to R29,0 billion, but grew by 1,4% in constant currency;
- Group operating profit was 6,5% lower, at R2,1 billion;
- TFG Africa operating profit increased by 2,7%;
- Market share in South Africa grew 20 basis points across Apparel during the period, according to the Retail
Liaison Committee ("RLC"), and TFG Africa online sales grew by 53,3% driven by our Bash platform;
- Headline earnings per share (HEPS) 6,8% lower at 272,8 cents, and basic earnings per share (EPS) 9,8% lower
at 262,4 cents;
- Cash generated from operations of R3,7 billion (H1 FY2026: R3,1 billion);
- Pre-IFRS 16 net debt of R9,1 billion^, R0,9 billion lower than at H1 FY2026; and
- Interim dividend declared of 121,0 cents per share (Sept 2025: 130,0 cents per share), a decrease of 6,9%.
STRATEGIC PROGRESS
In TFG Africa, we made clear progress against our four key priorities, as well as growing sales, operating profit and
market share despite a constrained consumer environment:
- Simplify the business and reduce costs: tactical savings delivered ahead of plan and structural cost
initiatives under way to create a leaner, simpler operating model;
- Close underperforming stores: 120 underperforming stores closed during the period, largely at lease
expiry, reducing trading space by 2,6%, with a further 60 to 80 closures planned for the second half;
- Leverage Bash and our fulfilment capability: online sales grew by 53,3% and now contribute 10,9% of TFG
Africa sales (H1 FY2026: 7,4%); and
- Strengthen Fintech and build out Credit: foundations now in place, with unified leadership across Credit,
Rewards and Bash, and the modernisation of our credit capability under way.
In TFG London and TFG Australia, strict cost control kept trading expenses broadly flat, while resets under new
leadership are under way at Phase Eight and Tarocash, positioning both businesses to benefit as trading conditions
improve.
GROUP FINANCIAL PERFORMANCE
Group sales declined by 0,4% to R29,0 billion (increased 1,4% in constant currency). In Africa, sales grew 1,2% in
the first quarter as trade softened in June, before recovering in the second quarter with growth of 6,2%. In the UK
and Australia, trading conditions remained more challenging, with TFG London sales declining by 2,2% (GBP) and
TFG Australia sales declining by 4,4% (AUD) for the period.
Group gross profit declined by 1,3% in rands. Through stringent cost control, trading expenses were held flat on the
prior period despite inflationary pressures, limiting the decline in operating profit to 6,5%. TFG Africa grew
segmental operating profit by 2,7%, while TFG London and TFG Australia declined by 32,5% (ZAR) and 28,5%
(ZAR) respectively.
Group inventory levels were 4,0% lower than at H1 FY2026. Inventory was well managed and controlled across all
three territories.
Cash generated from operations increased 20% from R3,1 billion in H1 FY2026 to R3,7 billion in H1 FY2027. Pre-
IFRS 16 net debt ended the period at R9,1 billion^, R0,9 billion lower than at H1 FY2026.
Finance costs decreased by 0,5% to R1,0 billion, with profit before and after tax 11,3% and 12,4% lower
respectively.
Sales growth in each business segment for the six months ended 30 September 2026 was as follows:
Business segment H1 FY2027 Contribution to
sales growth Group sales in ZAR
TFG Africa (ZAR) 3,8% 68,0%
TFG London (GBP) -2,2% 18,2%
TFG Australia (AUD) -4,4% 13,8%
Group (ZAR) -0,4%
As at 30 September 2026, the Group traded from 4 807 stores, with 71 new stores opened and 178 stores closed
during the period.
Stores TFG Africa TFG London TFG Australia Group
Opening balance at 1 April 2026 3 664 649 601 4 914
New stores 41 19 11 71
Closed stores (120) (28) (30) (178)
Closing balance at 30 September 2026 3 585 640 582 4 807
SEGMENTAL PERFORMANCE UPDATE
TFG AFRICA
Sales growth (in ZAR) per merchandise category was as follows:
Merchandise category H1 FY2027 Contribution to
sales growth TFG Africa sales
Clothing 4,0% 71,1%
Homeware 4,5% 15,1%
Beauty 11,4% 3,6%
Jewellery 6,5% 3,6%
Cellular -5,1% 6,6%
Total TFG Africa 3,8%
Consumer sentiment and discretionary spend in South Africa remained subdued as higher fuel prices and the
resumption of interest rate increases weighed on disposable income.
Sales grew 3,8%, ahead of RLC market growth of 1% for the period. Beauty and jewellery delivered a sales growth
of 11,4% and 6,5% respectively, while cellular sales declined by 5,1%. 120 stores were closed during the period,
and 41 new stores opened. Trading space decreased by 2,6% since 1 April 2026. TFG Africa now trades from 3
585 stores in 6 countries. Like-for-like sales grew by 2,0% for the period, with online sales growing by 53,3%, now
contributing 10,9% (H1 FY2026: 7,4%) to total TFG Africa sales.
Credit sales declined by 2,4%, representing 25,8% of TFG Africa sales (H1 FY2026: 27,4%), and the gross debtors
book grew 3,0% to R11,3 billion. Reflecting weaker consumer credit health across South Africa, net bad debt
increased by 10,2% to R824 million. The impairment allowance decreased to 17,7% of the gross book (H1 FY2026:
17,9%).
Gross margin improved by 10 basis points to 41,4% (H1 FY2026: 41,3%), with gross profit up 4,1%. Trading
expenses increased by 4,0% resulting in segmental operating profit growth of 2,7%.
TFG LONDON
Sales declined by 2,2% in GBP, as trade continues to be impacted by the prolonged weakness in the UK economy.
Store sales declined by 0,6%, while online sales declined by 4,2% and now account for 42,6% (H1 FY2026: 43,3%)
of total TFG London sales.
During the period, 28 stores were closed and 19 opened with TFG London now trading out of 640 stores in 9
countries.
Gross margin decreased by 10 basis points, to 64,0%.
Management remains focused on the protection of operating profit margin through cost containment and reduction
initiatives, with trading expenses held at prior period levels.
TFG AUSTRALIA
In Australia, sales for the period contracted by 4,4% in AUD, as discretionary spend remained under significant
pressure across the market. Like-for-like sales contracted by 3,6%. Gross margin improved by 40 basis points to
65,3%.
During the period, 30 stores were closed and 11 opened with TFG Australia now trading out of 582 stores in 3
countries.
Online sales contributed 7,6% to total TFG Australia sales (H1 FY2026: 7,7%).
Trading expenses were tightly held, increasing by just 0,5% compared to the prior period, but this was insufficient
to avoid significant operational deleverage.
OUTLOOK
The operating environment remains uncertain due to ongoing geopolitical tensions. With higher fuel prices and the
resumption of interest rate increases in South Africa and Australia, consumer confidence and spending are
expected to remain constrained for the foreseeable future across all three territories. The Group continues to
prioritise the levers within its control.
Sales in TFG Africa declined 0,7% for the five weeks ended 31 October 2026 (five weeks ended 1 November 2025:
growth of 3,7%).
As previously announced on SENS on 13 October 2026, October trade was impacted by a cyber incident affecting
the Phase Eight, Hobbs and Whistles brands. Their stores continued to trade throughout, albeit at reduced levels,
while the Group's other brands and businesses were unaffected. The Group has cyber insurance cover in place.
White Stuff, which was not affected by the cyber incident, grew sales by 4,8% for the five weeks ended 31 October
2026. Our legacy brands, Phase Eight, Hobbs and Whistles, are recovering from the cyber incident, with demand
on their own website down 30,2% for the five weeks ended 31 October 2026.
TFG Australia sales declined 5,3% (AUD) for the five weeks ended 31 October 2026 (five weeks ended 1 November
2025: growth of 0,6%).
While the first half has been difficult, the Group enters the second half with a leaner cost base, a smaller store
footprint, strong online momentum, lower inventory and reduced net debt. The Group remains focused on
executing its priorities, prudent capital allocation and on capital-light growth through its digital channels.
Any forecast financial information contained herein has not been reviewed or reported on by the Group's external
auditors.
^ Non-IFRS measure is in respect of Group Pre-IFRS 16 net debt – refer to note 20 of the unaudited interim
condensed consolidated financial statements for the half-year ended 30 September 2026.
CONSTANT CURRENCY INFORMATION
Constant currency information has been presented to illustrate the impact of changes in the Group's major foreign
currencies, the British Pound and Australian Dollar. In determining the constant currency growth rate, sales
denominated in British Pounds and Australian Dollars for the current period have been adjusted by application of
the aggregated monthly average British Pound and Australian Dollar exchange rates for the prior period.
The aggregated monthly average British Pound exchange rate is R22,01 for the current period and R24,10 for the
prior period. The aggregated monthly average Australian Dollar exchange rate is R11,60 for the current period and
R11,63 for the prior period.
Currency fluctuations of the Group's rest of Africa operations are not considered material and have therefore not
been applied in determining the constant currency growth rate.
The information contained in this announcement, including constant currency, is presented in accordance with the
JSE Limited Listings Requirements, and has not been audited, reviewed or reported on by the Group's external
auditors. The constant currency information is the responsibility of the Group's directors and has been prepared
for illustrative purposes only and, because of its nature, may not fairly present the Group's financial position,
changes in equity, results of operations or cash flows.
INTERIM ORDINARY CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared an interim gross cash dividend of 121,0 cents (96,8 cents
net of dividend withholding tax) per ordinary share for the six-month period ended 30 September 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 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, 6 November 2026
Last day of trade to receive a dividend Monday, 28 December 2026
Shares commence trading "ex" dividend Tuesday, 29 December 2026
Record date Thursday, 31 December 2026
Payment date Monday, 4 January 2027
Share certificates may not be dematerialised or rematerialised between Tuesday, 29 December 2026 and
Thursday, 31 December 2026, both days inclusive.
PREFERENCE CASH DIVIDEND DECLARATION
Notice is hereby given that the directors have declared a gross preference dividend (no. 180) 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 2027.
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, 6 November 2026
Last day of trade to receive a dividend Tuesday, 2 March 2027
Shares commence trading "ex" dividend Wednesday, 3 March 2027
Record date Friday, 5 March 2027
Payment date Monday, 8 March 2027
Share certificates may not be dematerialised or rematerialised between Wednesday, 3 March 2027 and Friday, 5
March 2027, both days inclusive.
CHANGES TO THE BOARD OF DIRECTORS AND BOARD COMMITTEES
In accordance with paragraph 6.71 of the JSE Listings Requirements, shareholders are advised of the following
changes to the Board of Directors of the Company.
APPOINTMENT OF INDEPENDENT NON-EXECUTIVE DIRECTORS
The Board is pleased to advise shareholders of the appointments of the following three independent non-executive
directors to the Board, with effect from 7 November 2026:
1. Alexandra Watson
Professor Watson is a Chartered Accountant (SA) and emeritus professor at the University of Cape Town,
where she taught postgraduate financial reporting before retiring in 2018. She is the independent non-
executive chair of ADvTECH Limited and a board member and audit and risk committee chair of WWF South
Africa. She served on the Coronation Fund Managers board for 17 years, including as chair from 2021 to
2025, and was previously a director of Steinhoff International Holdings N.V. and Petra Diamonds Limited.
She chairs the JSE’s Financial Reporting Investigations Panel and previously served as vice chair of the
Global Reporting Initiative.
2. Thabiso Madiba
Mr Madiba is a Chartered Accountant (SA), Registered Auditor and Chartered Tax Advisor, and a Senior
Lecturer at the University of Johannesburg. He is an audit partner at Barakabora Assurance and a director of
Barakabora Consulting and CAsucceed Training. He is currently chair of the Sasol Khanyisa board, a non-
executive director of SASPRO and Peermont Global East Free State, and serves on the boards of The Trevor
Noah Foundation and Roedean School (SA). He also chairs the UJ Provident Fund trustees and previously
chaired the audit committee of Nal’ibali.
3. Craig Butters
Mr Butters is a Chartered Accountant (SA) and CFA charterholder with more than 25 years’ experience in
equity research and portfolio management at various investment firms, including Prudential Investment
Managers (now M&G Investments) and Brait Specialised Funds. He qualified at Ernst & Young, has
experience in analysing companies across a broad range of industries, and has been involved in the
management of several institutional and unit trust portfolios.
The Board confirms that it has concluded the requisite fit and proper assessments in respect of each of the newly
appointed directors. Having considered the outcome of these assessments and the integrity information provided
by the directors, the Board is satisfied that there are no matters requiring disclosure and that each director meets
the requirements for appointment to the Board. The Board looks forward to welcoming Professor Watson, Mr
Madiba and Mr Butters to the Group and to their contributions to the Board.
RETIREMENT OF THE CHAIRMAN OF THE BOARD
Mr Michael Lewis has advised the Board that after almost 38 years as a director, 11 of which have been as
Chairman, he will retire as a director and Chairman of the Board with effect from 31 December 2026.
Mr Lewis has had a long association with the Group having served on the Board since 1989 and in the capacity as
chairman since June 2015. The Board expresses its sincere appreciation to Mr Lewis for his long-standing service
and invaluable contribution to TFG and wishes him well for the future.
The Board has elected Professor Alexandra Watson as its Chair with effect from 1 January 2027. In addition,
Professor Watson will replace Mr Lewis as a member of the Remuneration and Nomination Committees with
effect from 1 January 2027.
Signed on behalf of the Board.
M Lewis A E Thunström
Chairman Chief Executive Officer
Cape Town
6 November 2026
RESULTS PRESENTATION WEBCAST
A live webcast of the interim results presentation will be broadcast at 10:30 am (SAST) on Friday, 6 November
2026. 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.
ABOUT THIS ANNOUNCEMENT
Statement and availability:
The contents of this short-form announcement are the responsibility of the Board of Directors of the Company and
have been prepared in compliance with the JSE Listings Requirements.
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 6 November 2026. 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/2026/JSE/ISSE/TFG/FY27Int.pdf
and on the Company's website at: https://tfglimited.co.za/investor-relations/reports-presentations/
DIRECTORATE AND STATUTORY INFORMATION
Non-executive Directors:
M Lewis (Chairman), B S M Backman, C Coleman, G H Davin, M Mahlare, B L M Makgabo-Fiskerstrand, E Oblowitz,
J N Potgieter, N L Sowazi, 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: 06/11/2026 08:45:00
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 
