CAPE TOWN - THE FOSCHINI Group’s share price shot up 9.9 percent to R112.44 yesterday afternoon after it reported strong turnover growth in its third quarter to December 26, despite tough trading conditions.
The fashion retailers’ African operations (TFG Africa) grew turnover 14.7 percent in the third quarter to December 26, the group said in a statement yesterday.
Excluding the newly acquired Jet business, turnover for the quarter fell by 0.7 percent, which group directors said was “satisfactory” in difficult trading conditions and against a record high November Black Friday and November month in the previous financial year.
All merchandise categories grew turnover compared to the same quarter in the previous financial year, except for the most discretionary categories, cosmetics and jewellery.
Cash turnover growth for TFG Africa amounted to 36.5 percent yearon-year for the third quarter, and 8.5 percent for the nine months to December 26, 2020, over the comparative period the previous financial year.
Cash turnover contributes about 68.5 percent to total TFG Africa turnover. TFG said it had received further approvals to acquire the remainder of Jet’s operations in Africa.
The focus remained on cost containment and reducing gearing. Credit turnover for the third quarter, purposely restricted by stringent and reduced acceptance criteria, declined by 18.9 percent compared to the same period in the previous financial year, and by 28.3 percent for the nine months to December 26, 2020.
Group online turnover for the nine months period contributed 12 percent
to total turnover, while in the comparable prior period the percentage was 8.1 percent.
Over the quarter, and despite the many Covid-19 related negative impacts, the group continued to seek growth opportunities, and acquired the Jet business in South Africa, effective September 25, and the Jet businesses in Botswana, the Kingdom of eSwatini, Lesotho and Namibia at various dates in December and January 2021.
TFG said the three main territories where it operates, South Africa, UK and Australia, were experiencing second waves of the Covid-19 pandemic, with governments in these countries left with no alternative but to impose further lockdown restrictions to protect its citizens and curb the spread of the virus.
At TFG Australia, despite the extensive lockdowns in the state of Victoria in October 2020, third quarter turnover growth was 0.4 percent in the Australian dollar, with online turnover growth of 48.2 percent over the same quarter in the previous financial year.
For the nine months to December 26, online turnover contributed 9.9 percent to TFG Australia turnover.
At TFG London, a recovery in occasion and formal work-wear sales was not expected in the near term with the announcement of the third national lockdown on January 4, 2021.
TFG London’s turnover was 41.4percent in the third quarter compared to the same period in the previous financial year, while the decline came to 50.8 percent for the nine month period.
BUSINESS REPORT