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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")
TRADING UPDATE FOR THE 13 WEEKS ENDED 28 JUNE 2025
This trading update relates to the three-month year-to-date period from 1 April 2025 to 28 June 2025 ("Q1 FY2026" or "the period")
viewed against the comparative 13-week period from 1 April 2024 to 29 June 2024 ("Q1 FY2025").
SALIENT FEATURES
- Group sales grew by 11,5% for Q1 FY2026 to R14,4 billion;
- Group online sales grew by 45,5% in Q1 FY2026, now contributing 14,5% to total retail sales (Q1 FY2025: 11,2%), with the
acquisition of White Stuff. TFG Africa online sales grew by 40,2% driven by our Bash platform; and
- Market share gains in South Africa ("SA") of 50bps were achieved during the period compared to Q1 FY2025 in the TFG Africa
segment, as the Group outperformed total market retail sales growth according to the Retail Liaison Committee ("RLC").
GROUP FINANCIAL PERFORMANCE
Group sales, supported by the acquisition of White Stuff in the UK, grew by 11,5% to R14,4 billion in Q1 FY2026.
Sales growth in each business segment was as follows:
Business Segment Q1 FY2026
vs
Q1 FY2025
TFG Africa (ZAR) 5,2%
TFG London* (GBP) 57,7%
TFG Australia (AUD) (2,8%)
Group* (ZAR) 11,5%
* Excluding the acquisition of White Stuff (effective 25 October 2024), Group comparable sales grew by 2,5% (in ZAR) and TFG
London sales declined by 2,6%^ (in GBP) for Q1 FY2026.
SEGMENTAL PERFORMANCE UPDATE
TFG AFRICA
As indicated in our year-end results announcement released on SENS on 6 June 2025, retail sales for the first 8 weeks of FY2026
increased by 9,9%. This strong early performance was driven by the timing shift of the Easter holidays into April and a robust sales
performance in May due to favourable winter conditions against a weaker prior-year base impacted by pre-election consumer
caution in 2024.
June 2025 sales slowed and were flat on the comparative period, whilst total market retail sales reported by RLC declined by 4,0%.
The impact was intensified by the shift of school holidays from the last two weeks of June into July, leading to higher promotional
activity across the market.
TFG Africa's sales growth (in ZAR) per merchandise category was as follows:
Merchandise category Q1 FY2026 FY2026 contribution FY2025 contribution
vs to TFG Africa to TFG Africa
Q1 FY2025 sales sales
Clothing 4,2% 71,8% 72,5%
Homeware 8,5% 14,8% 14,3%
Beauty 24,5% 3,2% 2,7%
Jewellery 0,3% 3,2% 3,4%
Cellular 2,8% 7,0% 7,1%
Total TFG Africa 5,2%
Store sales rose by 3,2%, complemented by a strong online sales performance. The store network expanded by a net 3 stores,
bringing TFG Africa's total store count to 3 617.
Online sales grew by 40,2% and now contribute 7,0% (Q1 FY2025: 5,2%) of total TFG Africa sales, driven by the continued strong
performance of our Bash platform.
Credit sales grew by 9,3% and now contribute 28,2% (Q1 FY2025: 27,2%) of total TFG Africa sales with the debtors book growing
by 9,0% to R9,1 billion. Acceptance rates for new accounts increased by 0,5% to 20,3% (Q1 FY2025: 19,8%).
In the Clothing segment, total sales increased by 4,2% during the period while comparable sales grew 0,3%. The segment
experienced a strong 7,4% growth in April and May.
In the Homeware segment, sales rose by 8,5% and extended its consecutive market share gains to 5 months.
The Beauty segment maintained its strong growth trajectory, with sales rising by 24,5%, achieving further market share gains in line
with the Group's strategy.
TFG LONDON
Whilst TFG London was impacted by the continued weak UK economy, the addition of White Stuff to the portfolio saw sales
increase by 57,7% (excluding White Stuff sales declined 2,6%^) in GBP, with online sales growth of 55,9%. Online sales contribute
43,1% (Q1 FY2025: 43,6%) of total TFG London sales.
TFG AUSTRALIA
TFG Australia continued to face difficult trading conditions with sustained high inflation and interest rates impacting the consumer.
Sales were 2,8% lower in AUD, with a mixed performance throughout the period in a highly promotional market.
OUTLOOK
Global and domestic business conditions have been volatile due to uncertainty surrounding proposed trade tariffs, hindering
broader economic recovery and resulting in subdued GDP growth of just 0,1% for Q1 2025.
In TFG Africa we remain confident in our ability to sustain gross margin and control costs. H1 is expected to be particularly
challenging given the slow June trade, inconsistent trends and a promotional winter in SA. We expect to open over 100 new stores
in FY2026, while continuing to optimise our existing store portfolio. For the three weeks ended 19 July 2025, TFG Africa's sales have
increased by 9,2%.
While the UK economy remains under pressure, we are encouraged by the continued strong performance of White Stuff. Sales
growth was 68,8% (in GBP) for the three weeks ended 19 July 2025. Excluding White Stuff, sales growth is 6,3%^.
In Australia, sales have contracted by 4,1% (in AUD) in the three weeks ended 19 July 2025. Although trading conditions remain
challenging, the economy appears to be stabilising with two quarter-percent interest rate reductions in recent months.
^ Pro forma management account numbers used to calculate an indicative sales growth.
PRO FORMA FINANCIAL INFORMATION
Pro forma unaudited management account information for White Stuff was used in this announcement for illustrative purposes only
to provide an indicative sales growth excluding the acquired White Stuff business. The directors of the Company take responsibility
for the pro forma financial information contained in this announcement.
White Stuff sales for the period since acquisition on 25 October 2024 to 28 June 2025 was removed as if the acquisition did not
occur.
This pro forma financial 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 material events subsequent to the reporting date which require adjustment
to the pro forma financial information.
The pro forma management account retail turnover figures used were:
Group sales excluding White Stuff Q1 FY2026 Q1 FY2025 Growth
Rm Rm
Group retail turnover 14 381 12 895 11,5%
Less: White Stuff retail turnover (1 158) -
Group sales excluding White Stuff 13 223 12 895 2,5%
TFG London sales excluding White Stuff Q1 FY2026 Q1 FY2025 Growth
GBPm GBPm
TFG London retail turnover 123 78 57,7%
Less: White Stuff retail turnover (47) -
TFG London sales excluding White Stuff 76 78 (2,6%)
TFG London sales excluding White Stuff 3 weeks 3 weeks ended Growth
ended 19 July 20 July 2024
2025 GBPm
GBPm
TFG London retail turnover 27 16 68,8%
Less: White Stuff retail turnover (10) -
TFG London sales excluding White Stuff 17 16 6,3%
The underlying information used in the preparation of the pro forma financial information has been prepared by consistently applying
the accounting policies in place for the year ended 31 March 2025.
Shareholders are advised that none of the financial information contained in this announcement, including forecasts or estimates,
has been audited, reviewed or reported on by the Group's external auditors.
Cape Town
07 August 2025
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 07-08-2025 07:05:00
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