SOUTH AFRICA · RETAIL
Key Facts
- The result Operating profit fell 6.5% to R2.1 billion (US$128 million) in the six months to 30 September 2026.
- The sales Group revenue was flat at R31.4 billion (US$1.91 billion), while sales fell 0.4% to R29.0 billion.
- The dividend TFG cut its interim dividend 6.9% to 121 cents per share, about US$0.074, payable on 4 January 2027.
- The weak spots Sales in its UK and Australian businesses fell, and a cyber incident hit three UK brands in October.
- The change Chairman Michael Lewis retires on 31 December after 37 years on the board.
The Foschini Group operating profit fell 6.5% in the six months to 30 September, the South African retailer said on Friday 6 November 2026. That is R2.1 billion (US$128 million), and the group is known by its short name, TFG.
Revenue held flat at R31.4 billion (US$1.91 billion) as shoppers faced higher fuel prices and renewed interest-rate rises. All rand figures here use R16.42 per US$1, the rate on 5 November.
What TFG Reported
Sales dipped 0.4% to R29.0 billion (US$1.77 billion), but rose 1.4% once currency swings are removed. Headline earnings per share, the profit measure South African firms report, fell 6.8% to 272.8 cents.
Cash generated from operations rose 20% to R3.7 billion (US$225 million). Net debt, measured before lease accounting, fell by about R1 billion (US$61 million) to R9.1 billion (US$554 million).
The board declared an interim dividend of 121 cents per share (about US$0.074), down from 130 cents a year earlier. Shareholders must buy by Monday 28 December 2026 to receive it.
Africa Holds Up While the UK and Australia Slip
TFG Africa, its South African arm, grew sales 3.8% against market growth of 1% and lifted operating profit 2.7%. Online sales jumped 53.3% and now make up 10.9% of the division’s sales.
The group closed 120 underperforming stores in the half and opened 41 new ones. Net bad debt on customer credit rose 10.2% to R824 million (US$50 million).
In Britain, sales fell 2.2% in pounds and operating profit dropped 26.5%, both in pounds. In Australia, sales fell 4.4% and operating profit fell 28.3%, both in Australian dollars.
A Cyber Incident and a New Chair
In October, a cyber incident hit the Phase Eight, Hobbs and Whistles brands, which TFG owns. Their stores kept trading, but demand on their own websites fell 30.2% in the five weeks to 31 October.
TFG Africa sales fell 0.7% in those five weeks, and Australian sales fell 5.3%. Chairman Michael Lewis, a director since 1989, retires on 31 December, and Alexandra Watson becomes chair on 1 January 2027.
In Plain English, Who Is Who
TFG is a South African group that sells clothing, homeware, beauty products, jewellery and phones through more than 4,800 stores. It owns Phase Eight and Hobbs in Britain and Tarocash in Australia.
Michael Lewis chairs the board, and Alexandra Watson, an emeritus professor of financial reporting at the University of Cape Town, succeeds him. The Retail Liaison Committee tracks South African apparel market share.
What It Means for You
For US readers following emerging-market consumers, TFG offers a clear read on South African household budgets. Higher fuel prices and renewed rate rises are cutting spending, as our report of its earlier writedowns also showed.
Investors in companies with UK or Australian retail arms can also see how weak demand there offset gains at home. For trade context, see South Africa’s US trade access; TFG says it enters the second half with lower stock and debt.
What Is Not Known
TFG has not said how much the October cyber incident cost, though it holds cyber insurance. The company’s board can answer when it next reports trading.
TFG says Phase Eight, Hobbs and Whistles are recovering but has not said when sales will be normal again. Its management can update shareholders at the next trading update.
More: Africa news in English, every day from The Rio Times.
Frequently Asked Questions
How much did TFG earn in the half-year?
Operating profit fell 6.5% to R2.1 billion (US$128 million) in the six months to 30 September 2026. Headline earnings per share fell 6.8% to 272.8 cents.
Is TFG still paying a dividend?
Yes, the board declared an interim dividend of 121 cents per share, down 6.9%. The payment date is Monday 4 January 2027.
What hurt TFG’s results?
Higher fuel prices, rising interest rates and weak spending in Britain and Australia held back sales. A cyber incident in October also hit three UK brands.
Who is the new chair of TFG?
Alexandra Watson becomes chair on 1 January 2027, replacing Michael Lewis. Lewis retires on 31 December after 37 years as a director.
Sources: The Foschini Group Limited, JSE announcement, Summary of unaudited interim results for the half-year ended 30 September 2026, 6 November 2026; European Central Bank euro reference rates (18.4268 rand and 1.1224 dollars per euro), 5 November 2026; Previous Rio Times coverage: South Africa’s TFG Sees Profit Fall 59% After Writedowns, 31 July 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief