South African Fashion Retailer TFG Reveals Resilient Profit Growth Amid Challenging Retail Landscape
Kaapstad, vrijdag, 6 juni 2025.
TFG has achieved a remarkable profit growth of 4.6%, driven by a strong recovery in the second half of the year. The South African retail giant recorded a record turnover of 62.6 billion rand, with a significant digital transformation where online sales now constitute 12% of total sales. The company demonstrated exceptional resilience in Africa with a 7% revenue growth in the second half, supported by portfolio expansion and the strategic acquisition of British retailer White Stuff. This performance illustrates TFG’s ability to navigate complex economic challenges while maintaining robust profit growth.
Financial Performance
TFG reported a remarkable profit growth of 4.6% for the financial year ending 31 March 2025, with a record turnover of 62.6 billion rand. The group saw a significant improvement in the second half of the year, with a revenue growth of 4.1% [1][2]. The gross profit margin rose by 150 basis points to 49.4%, indicating strong operational efficiency [3].
Digital Transformation
A notable development is TFG’s digital expansion. Online sales now contribute 12% to total revenue, an increase from 9.9% in the previous financial year [3][4]. The ‘Bash’ platform has achieved profitability two years earlier than expected, which CEO Anthony Thunström describes as a unique achievement in South African retail [1].
Geographic Performance
TFG’s geographical spread showed mixed results. TFG Africa saw a revenue growth of 3.7%, with a strong 7% growth in the second half of the year [1][2]. In the United Kingdom, sales increased by 16.4% following the acquisition of White Stuff, while TFG Australia faced challenging trading conditions [1][3].
Future Perspectives
The company is optimistic about future growth, with plans to open more than 100 new stores in the coming financial year [3]. Furthermore, TFG has announced a final dividend of 230 cents per share, an increase of 15% compared to the previous year [1][2].