WOOLIES: 4,898 -46 (-0.93%)
South African retailer TFG rallies on December sales jump
JOHANNESBURG, Jan 16 (Reuters) - The Foschini Group
(TFG) reported a more than 30 percent jump in December
sales, buoyed by recent British acquisitions, lifting the South
African retailer's share price by 5 percent.
The clothing and homeware retailer has expanded in developed
markets, including the purchase of Britain's Whistles in 2016
and Hobbs last year, as a weak economy, tighter credit rules and
tough competition hampered growth in its home market.
That expansion helped to lift the international division's
December sales by nearly 64 percent, the company said on
"Following very strong Black Friday trade on November 24,
December trading was pleasing and above management's
expectations," it said, pointing to consolidated turnover growth
for Nov. 26 to Dec. 30 up 31 percent.
For the nine months to Dec. 31, total sales including its
African and international divisions were up 17.1 percent, TFG
said without disclosing the total value.
Shares in TFG gained 5.4 percent to 181.27 rand by 1325 GMT,
compared with a 0.7 percent rise for the JSE's All-share index
TFG's trading update was more upbeat than those of its South
African competitors as they contend with an economy forecast to
have expanded by 0.7 percent in 2017.
Woolworths Holdings on Monday warned that its
half-year profit could drop by as much as 17.5 percent.
(Reporting by Nqobile Dludla; Editing by David Goodman)
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