The Foschini Group (TFG) Trading update summary

Group financial highlights

• Group gross margin rose by over 100 basis points despite a 3.5% decline in sales, with margin improvements across all regions.

• Online sales grew 7.8% and now represent 10.8% of total sales, driven by a 42.7% increase in South Africa.

• Cash sales account for 81.2% of total group sales, with credit sales showing a slight increase.

Regional performance

• TFG Africa's gross margin improved by about 200 basis points, achieving a record gross profit of approximately R5.9 billion, despite a 1.0% sales decline.

• TFG London's gross margin increased by 150 basis points, but sales fell 12.4% due to weak consumer demand and shipping disruptions.

• TFG Australia's sales dropped 3.9%, but gross margin improved by 50 basis points; online sales rose 10.5%.

Segment and channel trends

• Online sales in TFG Africa surged 42.7%, now contributing 5.6% to total sales.

• TFG London saw online sales rise to 41.7% of total sales, up 160 basis points.

• TFG Australia’s online sales now make up 8.8% of total sales.