Foschini Earnings Jump on Bash and White Stuff, JSE:TFG Share Price Still Slips 5%

Quick overview

TFG delivered a robust set of financial results for the year ended March 2025, driven by strong digital and UK performance, but technical chart resistance capped the market’s enthusiasm.

Robust Financial Performance Across Regions and Channels

The Foschini Group (TFG) released its full-year results on Friday, showcasing a strong performance across multiple business units. The group’s gains were powered by its recent acquisition of UK fashion retailer White Stuff, an improved second-half showing in TFG Africa, and strong momentum from its digital platform Bash.

TFG Share Price Chart Weekly – The 50 SMA Rejected the Price

The combination of organic growth and strategic expansion helped drive meaningful top-line gains. TFG’s Africa division rebounded in the second half after a muted first half, while its UK operations saw significant uplift from White Stuff’s contribution. The acquisition, completed in late October 2024, immediately added scale and resilience to the UK portfolio.

Bash Turns Profitable Ahead of Schedule

Perhaps the biggest internal success story was Bash, TFG’s proprietary digital retail platform. Launched in 2023 to unify more than 15 fragmented brand websites, Bash was designed as a modern, customer-first hub for the group’s online retail footprint in South Africa.

In just two years, the platform has already achieved profitability—well ahead of its internal forecasts. Bash has generated R2.1 billion in revenue and now contributes to 48% of TFG SA’s retail sales growth, underscoring its growing influence in TFG’s omnichannel strategy.

Market Reaction: Gains Fade on Technical Resistance

The JSE initially responded positively to the earnings report, with TFG shares climbing 1.5% to reach R135.62 on Friday afternoon. That level represents a 31% gain over the past year, reflecting renewed investor confidence in the company’s fundamentals and strategic direction.

TFG Share Chart Daily – Monday’s Jump Was Erased and More

However, buyers were ultimately stopped by resistance on the weekly chart, specifically at the 50-period simple moving average (SMA), marked in yellow. This technical level acted as a ceiling, rejecting the upward momentum and triggering a sharp pullback.

By the close, TFGJ shares had fallen 5% to end the day at R131.52, reversing the session’s earlier gains and highlighting the tension between strong fundamentals and technical chart behavior.

Foschini Group FY Earnings Highlights (2025)

• Headline earnings per share (HEPS) rose 4.6% to 1015.6 cents, reflecting resilient profitability across segments.
• Final dividend increased 15% to 230 cents per share, underscoring a more confident capital return policy.

TFG Africa Performance

• Sales growth in H2 was up 7%, benefiting from a normalized base after prior-year clearance-driven distortion.
• Full-year sales increased by 3.7%, with all brands and categories contributing positively, indicating improved retail execution and consumer traction.
• Online sales in Africa surged 43.5%, raising digital contribution to 5.8% of total TFG Africa revenue (from 4.2% in 2024).
• Recent momentum remains solid—sales for the eight weeks to May 24, 2025, climbed 9.9%, signaling continued consumer demand into the new fiscal year.

TFG UK Growth Boosted by Acquisition

• UK sales rose 16.4% in GBP, driven by the strategic acquisition of White Stuff (completed Oct 25, 2024).
• White Stuff’s sales increased 20.3% YoY in the five-month post-acquisition window, indicating successful early integration.
• Combined with legacy operations, TFG UK store sales grew 11.8%, and online sales climbed 22.5%.
• Online now makes up a substantial 44.8% of total TFG UK sales (previously 42.7%), highlighting a shift in consumer preference and omnichannel gains.

TFG Australia Sluggish on Macro Headwinds

• Australian operations experienced 2.6% decline in AUD-denominated sales, as elevated inflation and interest rates weighed on discretionary spending.
• The region remains “highly promotional,” resulting in margin pressure and a mixed trading picture in H2.
• Despite challenges, online sales grew 7.3%, lifting digital penetration to 8.1% of total TFG Australia sales (from 7.3%).

Conclusion: TFG’s full-year results reflect a company successfully navigating retail’s digital transformation, capitalizing on acquisitions, and growing regional sales. Bash’s early profitability and White Stuff’s post-acquisition momentum provide strong validation of strategic bets made over the last 24 months.

Yet the share price action serves as a reminder that even strong companies can face market headwinds unrelated to fundamentals. While TFG’s long-term outlook appears increasingly positive, further upside may depend on breaking through key technical resistance and sustaining momentum across all geographies—particularly as macroeconomic uncertainty persists in Australia and parts of Europe.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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