South Africa’s Shein and Temu competitor breaks even two years ahead of schedule

The Foschini Group has set a record for annual results for the year ended March 2025, with the company’s online marketplace BASH now profitable ahead of schedule.

TFG CEO Anthony Thunström said that the group’s improved operating leverage is a key driver of its standout results.

“The positive result underscores our relentless focus on market share growth, margin improvement and cost management,” said Thunström.

“Our Africa business led the charge with exceptional results in the second half. Online sales surged, driven by the continued success of our Bash platform, which has reached profitability two years ahead of schedule.”

Gross margins expanded by 150 basis points on the prior year, with these gains having combined cost management across all divisions, translated into solid profit growth.

Online sales grew and now account for 12.0% of group sales, up from 9.9% the previous year.

TFG Africa grew sales by 7.0% in the year’s second half as the base normalised from the prior year’s first half clearance activity.

The function had strong growth ahead of the market, from womenswear, beauty and jewellery, and the recently acquired businesses, Jet and Tapestry.

Online sales also increased by 43.5%, contributing 5.8% (FY2024: 4.2%) to total TFG Africa sales.

TFG London also increased sales by 16.4% in GDP following the acquisition of White Stuff with effect from 25 October 2024.

White Stuff alone delivered 20.3% year-on-year growth for the 5 months post-acquisition, with overall store sales up 11.8% and online sales grew by 22.5%. Online sales now contribute 44.8% of total TFG UK sales.

TFG Australia also faced difficult trading conditions with sustained high inflation and interest rates hurting consumers.

Sales were 2.6% lower in AUD, with a mixed performance throughout the second half in a highly promotional market.

Online sales grew by 7.3% and now contribute 8.1% (FY2024: 7.3%) to the total TFG Australia sales.

The group’s key financial metrics showed that group revenue increased by 4.1% to R62.6 billion. Basic earnings per share increased by 4.9% to 980.6 cents per share.

The group’s final dividend per share increased by 15% to 230 cents per share. 

Outlook

“We are targeting the opening of over 100 new stores in the coming year, while driving continued optimisation of our existing footprint,” said Thunström.

“With the Riverfields distribution centre now close to fully operational – alongside our other growth and efficiency strategies – we expect continued improvement in operating margins and capital returns in 2026 and beyond.”

For the eight weeks ended 24 May 2025, TFG Africa’s sales increased by 9.9%, with the Easter shift into April estimated to have contributed 2%.

“Through our strong balance sheet and forward-looking strategies, we are confident in our ability to deliver against our medium- and long-term targets,” said Thunström.

“We are well-positioned to benefit from improved macroeconomic conditions and consumer recovery across all geographies to drive long-term shareholder value creation.”