The Foschini Group’s Australian market has recorded a 80 basis point lift in its gross margin in the year-to-date, adding to an overall margin boost across the group.
South African-based Foschini Group - also known as TFG Limited - owns the Retail Apparel Group (RAG) in Australia, with that entity managing brands such as Tarocash, Connor, YD, Johnny Bigg, Rockwear and AXL+Co.
RAG has 550 stores across Australia and New Zealand.
In a third-quarter trading update on the Johannesburg Stock Exchange, TFG reported that its Australian market continues to face tough trading conditions, but has shown improvement in the third quarter, with sales 0.5 per cent lower compared to the 2.4 per cent contraction in the first half of the year.
Year-on-year, TFG Australia sales fell by 3 per cent in the third quarter, and by 5.2 per cent in year-to-date terms.
The Australian market’s continued sales decline was offset by a 45.5 per cent sales lift in the third quarter for TFG’s London market, and a 5.3 per cent lift in its African market, with the latter being the group’s largest market contributor at just over 70 per cent.
London and Australia sit equally around the 14 per cent mark respectively.
Despite the sales slip, TFG Australia’s gross margin improved by 80 basis points, with its London market up by around 200 basis points, while Africa was up by around 210 basis points.
In the final quarter for FY25, TFG’s Australia sales for the three weeks ending January 18 grew by 3 per cent and “whilst challenging trading conditions remain, the economy appears to be stabilising with interest rate reductions expected soon.”