Foschini Group Ltd (FRA:F1WA)

Half Year 2026 Foschini Group Ltd Earnings Call Transcript

Nov 7, 2025 / 08:00 AM GMT

Release Date Price: €4.08 (-6.42%)

Transcript

Key Points

Positve

Foschini Group Ltd (FHNGY) achieved a 12.2% increase in top-line revenue, reaching over 31 billion rand, driven significantly by the inclusion of White Stuff.
The company maintained effective operating cost control, with trading expenses growing by 4.9%, aligning with CPI and key cost drivers such as rentals and salaries.
The beauty segment experienced significant growth, with turnover increasing by 23.6% and gross profit by 29.6%, driven by higher-margin owned brands.
The company has successfully launched its TF beauty strategy across numerous stores, aiming for a significant beauty business by FY30 with a blended gross margin above 45%.
Foschini Group Ltd (FHNGY) has continued to expand its JD Sports stores, with new locations trading well ahead of expectations, aiming for 50 stores and 2.5 billion rand in turnover by FY30.

Negative

The company faced a challenging first half with negative operating leverage, resulting in a 10% contraction in operating profit.
Foschini Group Ltd (FHNGY) experienced gross margin pressure across its segments, with overall group gross margins contracting by 20 basis points.
TFG Africa saw a 9.7% contraction in operating profit despite a 5.5% revenue growth, highlighting the tough trading conditions.
The sports category, the largest in terms of turnover and profit, faced a 1% contraction in gross profit due to aggressive liquidation and price inflation on branded footwear.
The company is cautious about the second half of the year, with ongoing challenges in the global and regional economies, including subdued consumer confidence and low GDP growth.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

TFGJ.J - Foschini Group Ltd
Half Year 2026 Foschini Group Ltd Earnings Call
Nov 07, 2025 / 08:00AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning everyone and welcome to our 2026 1st half results presentation.

We will TRY to work through our formal agenda in just under 1 hour, take a short comfort break, and then conclude with the Q&A session.

It has been a difficult 6 months for the sector globally and for TFG across ALL3 of our territories, with the economic and consumer recovery that so many thought would play out this year further delayed.

Against this pervasively soft backdrop, we also experienced extremely inconsistent trade in South Africa with significant and unpredictable fluctuations between each of the six months of this first half.

This partly reflects a greater concentration of spend around paydays, which do

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