Johannesburg – South African fashion retailer TFG has reported a 6.8% decline in half-year earnings, as weaker trading in its British and Australian operations offset improved performance in its African business and ongoing cost-reduction efforts.
The retailer, which owns brands including Foschini, Markham and Jet, said headline earnings per share fell to 272.8 South African cents for the six months ended September 30, 2026. Group operating profit declined 6.5% to 2.1 billion rand ($127.19 million).
Group revenue edged up 0.1% to 31.4 billion rand, despite a 0.4% decline in sales, reflecting persistent pressure on consumer spending and weaker performances across its international operations.
African Business Provides Support
TFG's African division remained the strongest performer during the reporting period, with retail turnover increasing 3.8% to 19.7 billion rand. Operating profit in the division also rose 2.7%.
However, its international businesses continued to face challenging trading conditions.
In local currency terms, TFG London recorded a 2.2% decline in retail turnover, while operating profit dropped 26.5%. TFG Australia reported a 4.4% decline in turnover and a 28.3% fall in operating profit.
Cost Reduction and Store Closures
TFG said it continued restructuring efforts to improve profitability through operational simplification, cost reductions and the closure of underperforming stores.
The group removed 257 million rand in costs from its African operations, covering stores, head office and other overheads.
It also closed 120 underperforming stores during the six-month period, releasing 190 million rand in working capital.
Despite the earnings decline, the retailer declared an interim dividend of 121 cents per share, representing a 6.9% reduction compared with the previous period.
Source: Reuters
Reporting: Nqobile Dludla
Editing: David Goodman
