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THE FOSCHINI GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1937/009504/06)
LEI: 3789PTO7LG718IG59F97
JSE / A2X share code: TFG
Ordinary share code: TFG
ISIN: ZAE000148466
Preference share code: TFGP
ISIN: ZAE000148516
("TFG" or "the Company" and together with its affiliates "the Group")
TRADING UPDATE FOR THE 21 WEEKS ENDED 22 AUGUST 2026
This trading update relates to the 21-week period from 29 March 2026 to 22 August 2026 ("year to date" or 'current period') viewed
against the comparative 21-week period from 30 March 2025 to 23 August 2025 ("prior year to date' or 'prior period').
SALIENT FEATURES
- Group sales grew by 0,2% (2,0% in constant currency) to R23 billion;
- Group online sales grew by 15,3%, now contributing 15,9% to total sales (prior period: 13,8%);
- TFG Africa sales grew by 3,4%;
- TFG Africa online sales grew by 54,1% driven by our Bash platform; and
- Market share gains in South Africa of 10 basis points ('bps') were achieved during the period April to July 2026, according to
the latest Retail Liaison Committee ("RLC") data.
GROUP FINANCIAL PERFORMANCE
Group sales grew by 0,2% (2,0% in constant currency) to R23 billion in the current period. Sales growth in each business segment
was as follows:
Current period
Business segment vs
Prior period
TFG Africa (ZAR) 3,4%
TFG London (GBP) 2,3%
TFG Australia (AUD) (4,7%)
Group (ZAR) 0,2%
The Group delivered sales growth in the current period in the TFG Africa and TFG London segments, notwithstanding continued
challenging macroeconomic and retail trading conditions. TFG Australia is currently facing the toughest trading environment, with
sales further impacted by the repositioning of the Tarocash brand.
SEGMENTAL PERFORMANCE UPDATE
TFG AFRICA
Monthly sales (trading weeks):
August month to
April May June July date (up to 22
August)
Growth 2,2% 2,3% (1,0%) 7,2% 6,9%
As indicated in our year-end results announcement released on SENS on 5 June 2026, sales for the first 9 weeks of FY2027 grew
by 2,2%. For the current period, TFG Africa has now delivered sales growth of 3,4%, with like-for-like sales growth of 1,5%.
Sales growth and contribution to total sales (in ZAR) per merchandise category were as follows:
Current period Current period
Merchandise category vs contribution to TFG
Prior period Africa sales
Clothing 3,7% 71,4%
Homeware 3,7% 15,0%
Beauty 12,5% 3,5%
Jewellery 6,6% 3,5%
Cellular (5,6%) 6,6%
Total TFG Africa 3,4%
Gross margin for July year to date is broadly in line with the same prior year period.
In line with our objective of structurally reducing the cost of doing business and improving the efficiency of our store portfolio, 85
stores, which were no longer economically viable, were closed during the current period. 25 new stores were opened during the
current period. Online sales grew by 54,1% and now contribute 10,5% (prior period: 7,1%) of total sales, driven by the continued
strong performance of our Bash platform.
Credit sales contracted by 2,5%, contributing 26,0% (prior period: 27,5%) of total sales. Acceptance rates for new accounts
increased by 40 bps to 20,3% (prior period: 19,9%). The debtors book grew by 4,5% to R9,6 billion, enhanced by value-added
billings.
TFG LONDON
Whilst TFG London was impacted by the continued weak UK economy, and the backdrop continues to be heavily promotional
driven, year to date sales growth was resilient and increased by 2,3% in GBP (like-for-like sales: 1,8%) with strong growth in owned
stores, and with online sales growth of 3,3% contributing 41,6% (prior period: 41,2%) of total sales.
The Phase Eight brand repositioning continued during the current period, focusing on resetting the store footprint and rightsizing the
cost base.
TFG AUSTRALIA
TFG Australia faced increasingly difficult trading conditions with high inflation and interest rates impacting the consumer. Year to
date sales were 4,7% lower in AUD (like-for-like sales: -4,1%), with a mixed brand performance throughout the period in a highly
promotional market.
The Australian business is making solid progress in managing costs and closing underperforming stores.
OUTLOOK
Globally the consumer is expected to remain under pressure in the near term. Management will maintain a disciplined approach to
credit extension and space optimisation, while continuing to focus on growing online penetration. The outlook remains cautious.
Within TFG Africa's store portfolio, a further projected c.80 stores are likely to fall within closure parameters during FY2027, and a
further c.100 stores during each of the following two financial years. This consolidation is expected to enhance both profitability
and return on capital.
Group net debt at the end of the interim period is forecast to be broadly in line with the prior year, reflecting positive cash generation
from inventory management, modest growth in the debtors book, and ongoing strict capital allocation. Covenants are all forecast
to be met.
CONSTANT CURRENCY INFORMATION
Constant currency information has been presented to illustrate the impact of changes in the Group's major foreign currencies, the
British Pound and Australian Dollar. In determining the constant currency growth rate, sales denominated in British Pounds and
Australian Dollars for the current period have been adjusted by application of the aggregated monthly average British Pound and
Australian Dollar exchange rates for the prior period.
The aggregated monthly average British Pound exchange rate is R22,08 for the current period and R24,22 for the prior period. The
aggregated monthly average Australian Dollar exchange rate is R11,62 for the current period and R11,66 for the prior period.
Fluctuations of the Group's rest of Africa operations are not considered material and have therefore not been applied in determining
the constant currency growth rate.
The information contained in this announcement, including constant currency, is presented in accordance with the JSE Limited
Listings Requirements, and has not been audited, reviewed or reported on by the Group's external auditor. The constant currency
information is the responsibility of the Group's directors and has been prepared for illustrative purposes only and, because of its
nature, may not fairly present the Group's financial position, changes in equity, results of operations or cash flows.
Cape Town
2 September 2026
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/09/2026 01:15:00
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