TFG said operating profit fell 6.5% to R2.1 billion in the six months to 30 September 2026, as the UK and Australia weakened.

According to TFG’s media release (TFG is The Foschini Group) of 6 November, group retail turnover slipped 0.4% to R29.0 billion. Headline earnings per share dropped 6.8% to 272.8 cents, and the interim dividend is 121 cents a share. Net debt before IFRS 16 fell by R1 billion to R9.1 billion.

Africa

Africa is the biggest part of TFG. Its retail turnover rose 3.8% to R19.7 billion and its operating profit rose 2.7% to R1.7 billion, with gross margin 10 basis points higher and trading expenses up 4%.

Using Retailers’ Liaison Committee data, TFG put its market share gain at 20 basis points, with share won in five of the six months. September sales grew 5.2% while the market grew 1.8%.

Group chief executive Anthony Thunström said Africa “grew sales, profit and market share” in the half.

Fall in operating profit where it fell, six months to 30 September 2026, percent
GroupGroup: 6.5%6.5%TFG LondonTFG London: 26.5%26.5%TFG AustraliaTFG Australia: 28.3%28.3%
GroupGroup: 6.5%6.5%TFG LondonTFG London: 26.5%26.5%TFG AustraliaTFG Australia: 28.3%28.3%

Source: TFG Limited, media release, 6 November 2026. London and Australia in local currency. TFG Africa is not shown because its profit rose 2.7%. Chart: Rand Desk

Abroad

In local currency, TFG London’s turnover fell 2.2% and its operating profit fell 26.5%. TFG Australia’s turnover fell 4.4% and its operating profit fell 28.3%.

“Conditions in the UK and Australia have been extremely tough,” Thunström said. TFG said it is resetting brands, costs and store footprints in both, with new leadership at Phase Eight in London and at Tarocash in Australia.

Costs, stores and online

Africa’s costs came down by R257 million in the half, made up of R184 million at stores and R73 million at head office and overheads. R130 million of that reached profit. A further R222 million of savings is expected in the second half, worth R171 million to profit.

TFG shut 120 underperforming stores and opened 41 new ones. It expects about 20% of the shut stores’ turnover to shift to sister stores or to Bash.

Sales through TFG’s online channels were R2.2 billion, up 53.3%. The company listed R1.8 billion from e-commerce and R326 million from BashStore, where staff in a store place the order on a Bash device. BashStore grew 65.4%.

Cash flow was stronger: operations generated R3.7 billion, up 20%. Spending on capital projects was cut 37% to R672 million, and stock on hand ended 4% lower at R15.3 billion.

Board changes

Michael Lewis, a director since 1989 and chairman since June 2015, retires from the board on 31 December 2026. He is succeeded on 1 January 2027 by Alexandra Watson, an emeritus professor at the University of Cape Town who chairs ADvTECH. Watson joins the board alongside independent non-executive directors Thabiso Madiba and Craig Butters.

For another retailer’s latest figures, see Shoprite’s four-month update. TFG’s next step is the 60 to 80 store closures planned for the second half.