South Africa's TFG swings to full-year operating loss, no dividend (updated)

China Cultural Tourism and Agriculture

10/06/2021 09:17

(Adds no dividend, result details)
    JOHANNESBURG, June 10 (Reuters) - South African fashion
retailer TFG  TFGJ.J  swung to an annual operating loss on
Thursday, hurt by COVID-19 lockdowns across its markets and a
non-cash impairment of 2.7 billion rand ($196.67 million) for
its London business.
     The clothes, homeware and jewellery retailer said the
operating loss before finance costs for the year ended March 31
came in at 719.2 million rand, after posting an operating profit
of 4.7 billion rand a year earlier.
    TFG, formally known as The Foschini Group, held on to the
final dividend, saying it plans to resume dividends in the 2022
financial year.
    By 0756 shares were down 5.37%.
    Clothing retailers were among the hardest hit by lockdowns
imposed in April, when non-essential retailers were forced to
close stores in South Africa and subsequently only allowed to
sell a few items. Similar lockdowns impacted TFG's London and
Australia operations. 
    While all three territories continue to be impacted by
COVID-19, business in the UK remains the hardest hit with no
stores operating during the fourth quarter of the financial year
ended March, TFG said.
    The group has 4,284 stores across 26 countries.
    Its retail turnover fell by 6.7% to 33 billion rand.
Excluding the recently acquired budget clothing business, Jet,
retail turnover for the year decreased by 13%.
    Gross margin for the group fell by 7.2% to 45.5% due to
increased promotional activity in response to challenging
trading conditions, stock provisions and a change in product mix
across all three segments, it said.
    Its headline earnings per share (HEPS) slumped by 80.8%.
    The after tax non-cash impairment related to TFG London's
goodwill and intangible assets due to the impact of the
pandemic, the retailer said.
($1 = 13.7287 rand)

 (Reporting by Nqobile Dludla; Editing by Emma Rumney & Simon
Cameron-Moore)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))