South African retailer TFG returns to profit, resumes dividend (updated)

China Cultural Tourism and Agriculture

11/11/2021 07:58

(Adds details)
    JOHANNESBURG, Nov 11 (Reuters) - South African fashion
retailer TFG  TFGJ.J  swung to a half-year headline profit, it
said on Thursday, as it recovered from COVID-19 restrictions
which forced store closures across its markets.
    TFG, formerly known as The Foschini Group, said it was
resuming dividends after halting them last year and declared an
interim payout of 170 cents per share. 
    Clothing retailers were among the hardest hit by lockdowns
imposed in April 2020 for over a month, when non-essential
retailers were forced to close stores in South Africa and
subsequently only allowed to sell a few items. Similar lockdowns
had impacted TFG's London and Australia operations.
    Restrictions on events and working from home had also
impacted demand for formal wear.
    The clothes, homeware and jewellery retailer said headline
earnings per share (HEPS), the main profit measure in South
Africa, came in at 393.4 cents in the six months ended Sept. 30,
up from a loss of 83.3 cents in the same period last year.
    Group retail turnover grew by 51.8% to 19 billion rand 
($1.26 billion), supported by continued market share gains in
men's and women's clothing and related products, expansion of
its footprint and further growth in online retail turnover.
    Sales in TFG Africa, which contributes just over 69% of
group retail turnover, jumped 59.5%. The Australia and London
businesses saw sales growth of 39.2% and 65.6%, respectively,
the owner of British womenswear brand Hobbs and Whistles said.
    The performance was achieved despite continued disruptions
during the current period, including extended lockdowns in
Australia and New Zealand; and the July civil unrest, which
looted and damaged 198 stores, and resumption of power cuts in
South Africa.
    The group estimates that retail turnover in excess of 400
million rand was lost as a result of the civil unrest.    
 ($1 = 15.0594 rand)

 (Reporting by Nqobile Dludla; Editing by Susan Fenton and Keith
Weir)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))