{"id":854477,"date":"2026-03-20T15:00:00","date_gmt":"2026-03-20T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=854477"},"modified":"2026-03-20T14:25:13","modified_gmt":"2026-03-20T12:25:13","slug":"bad-news-from-major-clothing-retailer-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/854477\/bad-news-from-major-clothing-retailer-in-south-africa\/","title":{"rendered":"Bad news from major clothing retailer in South Africa"},"content":{"rendered":"\n

The Foschini Group (TFG) is expecting a large decline in earnings, with sales growth being weak in Australia and the United Kingdom. <\/p>\n\n\n\n

In a trading statement for the year ending 31 March 2026, the group said that its earnings per share and headline earnings per share will decline by over 20% from the prior year’s results. <\/p>\n\n\n\n

The group said it will publish a further trading statement once it has attained reasonable certainty about the expected earnings results. <\/p>\n\n\n\n

The updated trading statement will be published prior to the release of TFG\u2019s annual results, which will be released on 5 June 2026.<\/p>\n\n\n\n

The group also released a trading update for the 11-week period from 28 December 2025 to 14 March 2026 (Q4 2026 so far), which looks at the group’s sales performance. <\/p>\n\n\n\n

TFG Africa saw sales grow 7.6% to date in Q4, reflecting improved performance and partly due to the dissipation of the two-pot retirement funds released in the base. <\/p>\n\n\n\n

Sales for the year to date increased 5.2%, with online sales and value-added revenues continuing to grow rapidly. <\/p>\n\n\n\n

“Gross margin has also now normalised since January; however, this has been insufficient to recover the margin lost during the year up to and including peak season in Q3 FY2026,” it said. <\/p>\n\n\n\n

TFG London has seen sales growth of 3.4% in GBP in Q4 to date, which includes the recently-acquired White Stuff in the base. <\/p>\n\n\n\n

Sales have grown by 31.0% in GBP for the year to date. However, it only grew by 0.4% when excluding White Stuff. <\/p>\n\n\n\n

Although the group said that White Stuff continues to perform well, it took on a large amount of debt to buy the UK-based retailer. There were pro\u2011forma sales growth of 5.2% for the year to date in the UK. <\/p>\n\n\n\n

TFG Australia has recorded flat sales to date in Q4. Year-to-date sales have contracted by 1.4% in AUD. <\/p>\n\n\n\n

Looking ahead, the group said that geopolitical uncertainty is expected to contribute to elevated input costs and cautious consumer behaviour. <\/p>\n\n\n\n

“The group\u2019s diversification and local manufacturing capability within its TFG Africa division provides some resilience,” it said. <\/p>\n\n\n\n

“Management actions are focused on cost discipline and operational efficiencies to mitigate these headwinds where possible.” <\/p>\n\n\n

\n
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The Foschini Share Price over the last year, which went down around 45%<\/figcaption><\/figure><\/div>\n\n\n
\n","protected":false},"excerpt":{"rendered":"

The Foschini Group is expecting a massive decline in earnings for the 2026 financial year following struggles in its three key markets. <\/p>\n","protected":false},"author":95,"featured_media":672213,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[3672,9214],"class_list":["post-854477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-foschini","tag-tfg"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=854477"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854477\/revisions"}],"predecessor-version":[{"id":854490,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854477\/revisions\/854490"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/672213"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=854477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=854477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=854477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}