TFG's robust earnings reflect strategic growth and online success

JSE-listed international fashion, homeware and lifestyle retailer TFG’s robust financial results for the year to end-March 2025 were fueled by a strong second half from TFG Africa, store expansion, and the acquisition of White Stuff in the UK.

Headline earnings a share (HEPS) were up 4.6% to 1015.6 cents. The final dividend was raised by 15% to 230 cents a share.

“The result underscored a ‘relentless’ focus on market share growth, margin improvement, and cost management,” CEO Anthony Thunström said in a statement. The group has a portfolio of 39 leading retail brands, with over 4 900 outlets in 23 countries on five continents.

“We are targeting the opening of over 100 new stores in the coming year while optimising our existing footprint. With the Riverfields distribution centre now close to fully operational—alongside our other growth and efficiency strategies—we expect continued improvement in operating margins and capital returns in 2026 and beyond,” said Thunström.

The Africa business led the charge in the past year with "exceptional" results in the second half. Online sales surged, driven by the success of the Bash platform, which had reached profitability two years ahead of schedule: “a very likely unique achievement in the South African retail space,” said Thunström.

Gross margins expanded by 150 basis points. These gains, along with disciplined cost management across divisions, translated into solid profit growth. Online sales maintained momentum and accounted for 12% of group sales, up from 9.9% the previous year.

TFG Africa’s sales were up 7% in the second half as the base normalised from the prior year’s first half’s clearance activity. All brands and categories showed improvement, generating full-year growth of 3.7%.

Thunström said there was strong growth ahead of the market from womenswear, beauty, and jewellery, as well as recently acquired businesses, Jet and Tapestry, where the retail platform provided credit, online, and distribution capabilities.

Online sales grew 43.5% and contributed 5.8% (2024: 4.2%) to total TFG Africa sales.

TFG UK increased sales 16.4% in pounds following the acquisition of White Stuff from October 25, 2024. White Stuff saw 20.3% year-on-year growth for the five months post-acquisition.

The addition of White Stuff to the portfolio saw store sales up 11.8% and online sales grow 22.5%. Online sales now contribute 44.8% (42.7%) of total TFG UK sales.

TFG Australia faced difficult trading conditions, with sustained high inflation and interest rates impacting the consumer. Sales were 2.6% lower in Australian dollars, with a mixed performance throughout the second half in a “highly promotional market,” Thunström said. Online sales grew by 7.3% and now contribute 8.1% (7.3%) to total TFG Australia sales.

For the eight weeks to May 24, 2025, TFG Africa’s sales increased by 9.9%, with the Easter shift into April estimated to have contributed 2%.

“We are confident in our ability to deliver against our medium- and long-term targets,” Thunström concluded. TFG’s share price gained 1.5% to R135.62 on Friday afternoon on the JSE, a price that was 31% higher than a year ago.

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