Johannesburg - The Foschini Group, a South African clothing retailer that earlier this year bought UK clothing chain Phase Eight, said first-half profit rose 17 percent as cash purchases increased alongside new store openings. The stock reversed an earlier decline.
Earnings excluding one-time items climbed to R4.70 in the six months through September from R4.03 a year earlier, the Cape Town-based company said in a statement on Thursday.
The interim dividend was raised 16 percent to R3.06 a share. Cash sales as a proportion of the total rose to 46 percent from 44 percent a year earlier, with the balance settled on credit.
“Our current good cash-sales growth is expected to continue, reflecting the ongoing desirability of our merchandise,” CEO Doug Murray said in the statement. The credit-sales performance is also encouraging, he said.
TFG agreed to buy Phase Eight in January to boost its international expansion, bringing its total outlets to 2 913. The company plans to open 70 new stores in sub-Saharan Africa during the second half and 35 Phase Eight outlets internationally.
Foschini shares climbed 1.9 percent to R145.89 as of 2:35 p.m. in Johannesburg on Thursday, bringing the gain this year to 9.4 percent. The FTSE/JSE Africa General Retailers Index has climbed 15 percent this year.
BLOOMBERG