South African Retailer TFG Reports 4.6% Rise in Annual Earnings with Strong UK Sales Boost

South African fashion retailer The Foschini Group (TFG) has reported a 4.6% increase in annual earnings for the fiscal year ending March 31, 2025. This growth is attributed to a strong rebound in African sales during the second half of the year, strategic store expansions, and the acquisition of UK-based fashion chain White Stuff.

TFG's headline earnings per share rose to 10.15 rand, up from 9.707 rand in the previous fiscal year. Gross profit reached a record 28.8 billion rand ($1.62 billion), marking a 6.7% increase. Group revenue climbed by 4.1% to 62.6 billion rand, while retail sales grew by 3.6%, bolstered by an 8.7% rise in the second half of the year.

In the African market, TFG experienced a 7% increase in sales during the second half, offsetting a slight decline in the first half, resulting in a full-year sales increase of 3.7%. The UK segment saw sales surge by 16.4% in pounds, following the acquisition of White Stuff. Conversely, TFG Australia faced challenges due to high inflation and interest rates impacting consumer spending.

The acquisition of White Stuff in October 2024 was a strategic move to diversify TFG's brand portfolio and strengthen its presence in the UK market. White Stuff, known for its high brand equity, generated a revenue of £154.8 million and a core profit of £8.6 million in the financial year ending April 30, 2024. The company operates 113 stores and 46 store-in-store locations in the UK, along with international operations. TFG retained White Stuff's senior management team, led by CEO Jo Jenkins.

TFG CEO Anthony Thunström commented on the acquisition, stating, "This acquisition represents a meaningful build out of our London business, adding close to 50% to TFG London's turnover." TFG London CEO Justin Hampshire added, "The addition of White Stuff to TFG London diversifies and strengthens the retailer's existing womenswear portfolio, adding the first lifestyle brand."

In addition to its expansion efforts, TFG has made significant strides in digital transformation. Online sales now represent 12% of total sales, driven by the success of the Bash platform, which achieved profitability two years ahead of schedule.

The company's positive financial performance and strategic initiatives, including the acquisition of White Stuff and the success of its online platform, position TFG for continued growth and diversification in the competitive fashion retail industry.