A day after Truworths put out a tepid trading update – fellow Cape-based retail giant The Foschini Group (TFG) reported a decline in sales, group revenue and headline earnings for the half-year ended 30 September on Friday.

Despite the declines – amid a “challenging operating environment” – TFG managed to up its interim dividend for the period, as it improved its gross margins. This resulted in its gross profit increasing by a modest 2.5%.

The group declared an interim dividend of 160 cents per share (up 6.7%), compared to 150cps for its corresponding half year.

Key financial and operating metrics:

• Group gross profit up 2.5% to a record R12.8 billion
• Group gross margin increased by 220 basis points, as gross margins continued to improve across all territories
• Sales were 0.1% lower in TFG Africa (includes core SA market), 8.2% lower in TFG London and 2.4% lower in TFG Australia (in local currency)
• Group revenue came in 1.4% lower to R28 billion
• Operating profit before finance costs declined 3.4%, to R2.5 billion
• Basic earnings per share (EPS) declined 4.8% to 368.3 cents (Sept 2023: 386,8 cents);
• Headline earnings per share (HEPS) declined 5.6%, to at 371.6 cents (Sept 2023: 393.6 cents)
• Group online sales grew 9.9% to R2.8 billion, contributing 10.7% to total retail sales. The growth largely attributable to growth of 47.9% in South Africa via its Bash platform
• Credit sales now contribute 26,8% (H1’2024: 26,3%) to TFG Africa sales.