South African fashion retailer TFG swung to a half-year headline loss on Thursday as the coronavirus pandemic forced it to close stores in its major markets. Photo: Sam Clark
South African fashion retailer TFG swung to a half-year headline loss on Thursday as the coronavirus pandemic forced it to close stores in its major markets. Photo: Sam Clark

The Foschini Group swings to half-year headline loss on Covid-19 impact

By Reuters Time of article published Nov 5, 2020

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JOHANNESBURG (Reuters) - South African fashion retailer TFG swung to a half-year headline loss on Thursday as the coronavirus pandemic forced it to close stores in its major markets.

TFG, which is formally known as The Foschini Group, reported a headline loss per share of 91 cents in the six months to Sept. 30, compared to headline earnings per share of 531.2 cents a year earlier.

HEPS is the main profit measure in South Africa.

The retailer also blamed the dilution impact of its R3.95 billion rights offer as well as the acquisition of certain stores and assets of budget clothing retailer Jet.

Trade was heavily impacted by significant store closures in April and May, equating to eight weeks in lost turnover, with lockdowns in the United Kingdom and Australia impacting sales further, it said.

TFG’s clothing business was the hardest hit, impacted by heavy promotional activity in the sector and subdued demand for occasion and formal wear as people were forced to stay and work from home. Cellular and homeware, however, performed strongly, it added.

The Foschini Group retail turnover fell 26.1 percent to R12.5 billion, while online sales, which now contribute 14.4 percent to group retail turnover, for TFG Africa and TFG Australia jumped 116 percent and 67 percent, respectively.

REUTERS

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