Cape Town - Foschini, the fashion retailer that early this year acquired Totalsports, yesterday posted a 22 percent slide in headline earnings a share to 34,5c in the six months to September 30, as a promising start to the year was cancelled by a below budget second-quarter performance, figures showed.
Group turnover, excluding R98 million from the Totalsports acquisition from Moresport, increased by a mere 4,7 percent to R1,4 billion.
Dennis Polak, the managing director, said the expected growth in consumer spending had not yet materialised.
"The second half of the year is more significant in terms of trading but our performance is still very dependent on the expected upturn, particularly in November and December," he said.
Executives also revealed that Totalsports, bought in the first half of the year, drained a larger-than-expected R10 million from group earnings in the current financial year.
Indications were that Foschini would not match the previous year's full-year earnings.
"Significant" earnings growth had been pencilled in for the 2002 financial year.
Foschini was ahead of budget for the first three months of the financial year, but July, August and September came in well below budget - resulting in additional markdowns to clear stock. Jewellery sales were more negatively affected than clothing.
Foschini fared poorly with sales growth of only 2,7 percent, but significant changes had been introduced in the division, which would be felt in the coming financial year.
Despite the costs in revamping Totalsports, the specialist sportswear dealer was well placed for long-term growth.
The recently launched Exact! and the growth of Retail Credit Solutions, were expected to bump up next year's profits.
Foschini share price climbed 40c yesterday to end at R10.