Truworths International (TRU) H1 2026 earnings summary

Executive summary

• Merchandise sales rose 0.4% to R12.1 billion for the 26 weeks ended 28 December 2025, with headline earnings up 0.4% to R1.83bn and diluted HEPS up 1.7% year-over-year.

• Strong cash generation and disciplined capital management, with net cash of R260m after significant share buy-backs and a major UK distribution centre acquisition.

• Maintained a resilient business model with geographical diversification across South Africa and the UK, focusing on long-term value creation and consistent dividend cover.

• Office UK delivered robust growth, while Truworths Africa faced constrained sales amid consumer pressure but saw margin improvement.

• Strategic emphasis on organic growth, innovation in merchandise, credit products, and e-commerce expansion, with ongoing investment in store remodeling, supply chain, and technology.

Financial highlights

• Sale of merchandise increased 0.4% to R12.1bn; gross profit up 0.5% to R6.28bn; gross margin steady at 51.8%.

• Group trading profit increased 2.8% to R2.1 billion, with trading margin up to 17.2%.

• Cash generated from operations was R2.8 billion, with a 2% year-over-year increase in true cash generation.

• Share buybacks totaled R746 million in the period, R3.2 billion since 2020 (about 14% of shares).

• Interim dividend per share up 1.3% to 321c; 10-year average dividend yield at 6.7%, with R17 billion paid in dividends over the decade.

Outlook and guidance

• Group retail sales for the first seven weeks of H2 2026 down 0.2% (up 1.5% in constant currency); Truworths Africa up 0.6%, Office UK up 3.4%.

• Trading space projected to grow 2% in FY26, with 1% growth in Africa and 10-12% in the UK.

• Focus remains on accelerating growth with discipline, especially in top-line and credit products, and ongoing innovation.

• IFRS 16 gains in Office not expected to recur in the next period.

• Cautiously optimistic stance, with optimism increasing for the coming year.