The Foschini Group (TFG) has reported its earnings results for the six months ending September 2025, revealing a period of revenue growth that was overshadowed by a decline in profitability. While the group's revenue increased to R31.4 billion, operating profit and headline earnings per share both decreased as the company navigated weak consumer environments across its key markets in South Africa, the UK and Australia. Despite the challenging conditions, the directors have declared a cash dividend, signalling a continued commitment to shareholder returns.
● Revenue: R31.4 billion, an increase from R28 billion the previous year.
● Gross profit: R14.4 billion, up from R12.80 billion, a year-on-year (YoY) increase.
● Operating profit before interest costs: Declined to R2.30 billion, from R2.50 billion the prior year.
● Profit attributable to equity holders: Decreased to R944 million, from R1.2 billion the prior year.
● Headline earnings per share (HEPS): Decreased to R2.93 per share, from R3.72 per share a year earlier.
● Dividend: A dividend of R1.30 per share has been declared.
Analysis & Outlook
TFG’s H1 2026 results highlight a company demonstrating resilience during a challenging retail environment. Despite the share price dropping over 50% from its December 2024 high of R178.67, revenue grew to R31.4 billion, reflecting the group’s continued ability to attract customers even as operating profit and headline earnings came under pressure. South African consumers remain constrained by low GDP growth and high unemployment, with TFG Africa’s sales growth easing to 3.7% early in the second half. In the UK, the acquisition of White Stuff lifted reported sales by 34.9%, though underlying sales dipped 0.7%, while Australia saw only 0.6% growth during a subdued retail climate. Management remains focused on operational discipline, digital expansion and prudent capital allocation to sustain momentum through difficult trading conditions. Analysts currently hold a buy consensus on the share price, with an average 12-month price target of around R136.30, signalling confidence in the company’s brand strength and long-term growth potential despite short-term volatility.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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