Foschini styling through the downturn


Foschini styling through the downturn

Published Date: 2019-05-24 | Source: Stephen Gunnion | Author: Stephen Gunnion

Foschini styling through the downturn

The fashion and homeware retailer has reported a good rise in earnings despite difficult trading conditions.

The Foschini Group (TFG) says its operations in SA, the UK and Australia all delivered market-beating turnover growth last year, even as the difficult trading conditions it encountered in the first half continued through to the second six months.

Sales were boosted by the full-year inclusion of upmarket UK women's chain Hobbs and Australian menswear retailer Retail Apparel Group (RAG), bought during its 2018 financial year.

Group retail turnover rose 19.6% to R34.1 billion in the year to end-March. It reported turnover growth of 8.9% for TFG Africa, 31.3% for TFG London and 58.3% for TFG Australia in local currency. Including comparable numbers for Hobbs and RAG, turnover grew by 3.5% and 14.5% respectively for TFG London and TFG Australia.

Online sales benefited from significant investment in the group's online offering, with turnover rising 57.2%. Online sales now contribute 8.8% of total turnover.

Operating profit before acquisition and finance costs rose 4.9% to R4.33 billion. Headline earnings increased by 12% to R2.7 billion, while headline earnings per share were 9% higher at 1,187.1c. Excluding the costs incurred the previous year for its Hobbs and RAG acquisitions, headline earnings grew by 8.5% and HEPS by 5.6%. It's increased its final dividend by 7.1% to 450c per share.

The retail group's shares ended trading 0.8% higher at R176.75 yesterday.

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