South African fashion retailer TFG (TFGJ.J) reported a 21.3% decline in half-year earnings on Friday, as challenging trading conditions persisted across Africa, the United Kingdom, and Australia.
The company said that sales were primarily supported by its recent acquisition of the British clothing chain White Stuff, according to Reuters.
Headline earnings per share fell to 292.6 cents for the six months ending September 30, compared with the same period a year earlier.
Operating profit dropped 9.9% to 2.3 billion rand ($132.85 million), reflecting ongoing economic pressures and increased promotional activity during the winter months.
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“The period was marked by weak and uneven consumer demand in South Africa, particularly in June and September, which impacted margins and profitability,” the retailer said in a statement.
TFG’s group gross margin contracted by 20 basis points to 49.3%, while total group revenue rose 12.2% to 31.4 billion rand, driven by the inclusion of White Stuff in the UK operations and continued growth within TFG Africa.
Online sales surged 55.3%, now accounting for 14.7% of total group sales.
The company declared an interim dividend of 130 cents per share.
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Image Credit: Reuters
