The Foschini Group (TFG) Q3 2025 TU earnings summary

Executive summary

• Group sales grew 8.4% in Q3 FY2025, reversing a 2.0% contraction in H1 FY2025.

• Sales for the nine-month period rose 1.6% year-over-year, with gross profit up 5.7%.

• Online sales surged 47.2% in Q3 FY2025 and 20.8% for the nine months, now 11.3% of total retail sales.

• Market share gains in Menswear and Womenswear in TFG Africa, with overall share up to 19.8% in Q3 FY2025.

Financial highlights

• TFG Africa sales up 5.3% in Q3 FY2025; TFG London up 45.5% (boosted by White Stuff acquisition); TFG Australia down 3.0%.

• Gross margin for TFG Africa increased by 210 basis points for the nine-month period.

• TFG London gross margin improved by approximately 200 basis points year-to-date.

• TFG Australia gross margin improved by 80 basis points year-to-date.

• Credit turnover grew 7.3% in Q3 FY2025 and 4.0% for the nine months, now 25.8% of total sales.

Outlook and guidance

• Positive outlook in South Africa with modest economic recovery expected in 2025.

• TFG Africa sales grew 14.6% for the three weeks ended 18 January 2025.

• Over 100 new stores planned for TFG Africa in FY2026, with ongoing store portfolio rationalisation.

• UK economy remains pressured, but White Stuff's performance is encouraging; TFG London sales up 63.3% (including White Stuff) for three weeks ended 18 January 2025.

• Australia shows signs of stabilisation, with sales up 3.0% for the three weeks ended 18 January 2025 and expected interest rate reductions.