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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 AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
This trading update and trading statement relates to the six-month period from 1 April 2025 to 30 September
2025 ("H1 FY2026" or "the period") viewed against the comparative six-month period from 1 April 2024 to 30
September 2024 ("H1 FY2025" or "prior period").
TRADING UPDATE
SALIENT FEATURES
- Group sales grew by 12,7% for H1 FY2026 to R29,2 billion (3,5%^ excluding White Stuff);
- Group online sales grew by 55,3% in H1 FY2026, now contributing 14,7% to total retail sales (H1
FY2025: 10,7%), including White Stuff. TFG Africa online sales grew by 40,2% driven by our Bash
platform;
- Market share in South Africa ("SA") was maintained in Apparel, and in Homeware grew 20 basis points
("bps") during the period when compared to H1 FY2025, according to the Retail Liaison Committee;
- Negative operating leverage across the Group arising from subdued sales growth and gross margin
contraction, despite tight cost control; and
- Increase in Group finance costs of 14,5% resulting from financing of the White Stuff acquisition in
October 2024, and from the IFRS 16: Leases charge related to new stores and lease renewals.
FINANCIAL PERFORMANCE
TFG AFRICA
Consumer sentiment and discretionary spend in South Africa have remained subdued for longer than
expected, despite moderating inflation and recent interest rate cuts. The SA economy softened significantly
towards the end of the period with GDP growth of c.0,8% year to date.
Sales for the period grew 5,3%. As highlighted in the Company's trading update released on SENS on 7 August
2025, Q1 retail sales grew 5,2%, after a strong start to the year, with sales in the first eight weeks up 9,9%
benefiting from a strong start to winter trade. After a difficult June, trade recovered in July through to early-
September, before being impacted by a sharp contraction in customer activity and a change in the timing of
school holidays that saw sales shift into October.
Credit sales grew by 7,9%, representing 27,4% of total sales (H1 FY2025: 26,8%) with acceptance rates for
new accounts decreasing by 0,7% to 19,6% (H1 FY2025: 20,3%). The debtors book grew by 8,0% to R9,0
billion (H1 FY2025: R8,3 billion). The quality of the book is in line with the prior period with an increase in
provisioning since year end reflective of book growth.
Markdown from winter clearance activity impacted gross margins by 100 bps before recovering to a net 90
bps margin contraction by the end of the period. Despite good operational cost control, negative operating
leverage from the subdued trading environment resulted in a decline in segmental EBIT of 9,7%.
TFG LONDON
With the addition of White Stuff to the TFG London portfolio in Q3 FY2025, total sales increased by 69,0% in
GBP. Excluding White Stuff, sales grew by 0,7%^ as trade continued to be impacted by a weak UK economy.
However, sales trended consistently better throughout the period with Q2 growth of 4,5% offsetting the 2,6%
contraction in Q1.
White Stuff continues to deliver market-leading performance, with sales growing 12,5% for the period and
with the inclusion of White Stuff, TFG London EBIT grew 9,1%.
Finance costs doubled to GBP4,0 million as a result of the funding of the White Stuff acquisition in October
2024.
TFG AUSTRALIA
In Australia, discretionary spend remains subdued but sales trended consistently better throughout the
period with Q2 growth of 1,6% in AUD offsetting the 2,8% contraction in Q1. Sales for the period contracted
by 0,5%.
As a result of expenses growing ahead of sales, driven by costs from new stores and continued inflationary
pressure on expenses, segmental EBIT declined by 18,4%.
TRADING STATEMENT
TFG is currently finalising its results for the six months ended 30 September 2025, which are expected to be
released on SENS on or about 7 November 2025.
In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is
required to publish a trading statement as soon as it becomes reasonably certain that the financial results for
the period to be reported on next will differ by 20% or more from the financial results for the corresponding
prior period.
Shareholders are advised that a reasonable degree of certainty exists that the earnings per share ("EPS") and
headline earnings per share ("HEPS") of the Group for the period will be between 20% to 25% lower than
those reported for the corresponding prior period.
The expected ranges are as follows:
Reported Expected
Six months ended Six months ended
30 September 30 September
2024 2025
Cents Cents Expected %
decrease
Basic earnings per ordinary share 368,3 276,2 to 294,6 20,0 to 25,0
Basic headline earnings per ordinary share 371,6 278,7 to 297,3 20,0 to 25,0
^ 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 for the Group, excluding the acquired White
Stuff business.
White Stuff sales since acquisition on 25 October 2024 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 H1 FY2026 H1 FY2025
Growth
Rm Rm
Group retail turnover 29 152 25 875 12,7%
Less: White Stuff retail turnover (2 376) - -
Group sales excluding White Stuff 26 776 25 875 3,5%
TFG London sales excluding White Stuff H1 FY2026 H1 FY2025
Growth
GBPm GBPm
TFG London retail turnover 245 145 69,0%
Less: White Stuff retail turnover (99) - -
TFG London sales excluding White Stuff 146 145 0,7%
White Stuff H1 FY2026 H1 FY2025
Growth
GBPm GBPm
White Stuff retail turnover 99 88 12,5%
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.
The directors of the Company take responsibility for the pro forma financial information contained in this
announcement.
Shareholders are advised that none of the financial information contained in this announcement, including
the pro forma financial information, forecasts or estimates, has been audited, reviewed or reported on by the
Group's external auditors.
Cape Town
21 October 2025
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 21-10-2025 10:00:00
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