Truworths International (TRU) H2 2026 earnings summary

Executive summary

• Delivered resilient results with a strong balance sheet and net cash position, despite challenging macroeconomic conditions in South Africa and the UK.

• Maintained strong cash generation, with cash conversion rate improving to 97% from 90%.

• Focused on long-term value creation through disciplined investment, organic growth, product innovation, brand elevation, and customer engagement.

• Continued investment in store expansion, technology, omni-channel capabilities, and new brand launches.

Financial highlights

• Group sale of merchandise rose 0.1% to R21.34bn year-over-year; profit before finance costs and tax down 4.4% to R4.09bn.

• Gross margin increased, with a like-for-like rise of 20 basis points after accounting changes; stable at 51.3%.

• Cash generated from operations down 12.9% to R4.22bn, but only 2% lower on a comparable basis.

• Net cash position of ZAR 196 million after ZAR 949 million in share buybacks.

• Returned ZAR 2.8 billion to shareholders via dividends and buybacks.

Outlook and guidance

• Confident in gradual recovery in retail spending over the medium term, with continued focus on product innovation, brand development, and customer engagement.

• Group retail sales for the first seven weeks of FY27 declined 4.8% (1.8% in constant currency).

• Margin trends improved; gross profit up ~3% in both Truworths Africa and Office UK.

• Trading space projected to grow 2% group-wide, with 1.5% growth in Truworths Africa and 16.4% in Office UK.

• Largest store opening program since COVID planned for South Africa, with 2.5% retail space growth.