Fashion retailer TFG swings to profit on post-COVID recovery
JOHANNESBURG (Reuters) – South African fashion retailer TFG swung to a full-year operating profit, it said on Friday, as it recovered from COVID-19 restrictions which forced store closures across its three markets.
Clothing retailers were among the hardest hit by lockdowns in the first half of 2020, when non-essential retailers were forced to close stores in South Africa and subsequently only allowed to sell a few items.
Similar lockdowns also impacted TFG’s London and Australia operations.
As restrictions have eased, consumers have refreshed their wardrobes and homes after months stuck at home.
The clothes, homeware and jewellery retailer reported operating profit before finance costs for the year ended March 31 of 4.8 billion rand ($310.91 million) versus a loss of 719.2 million rand a year earlier.
Headline earnings per share jumped 410% to 1,009 cents.
Group revenue grew 29.7% to 46.2 billion rand, with retail turnover growth of 31.6% at 43.4 billion rand as all markets performed above expectations, the owner of Sportscene said.
TFG, formally known as The Foschini Group, also resumed annual dividend payouts, declaring a final dividend of 330 cents per share.
($1 = 15.4385 rand)
(Reporting by Nqobile Dludla; editing by Jason Neely)