The Foschini Group (TFG) today reported steady sales growth and a measured response to a
prolonged period of difficult trading across all regions.
Group revenue for the six months ended 30 September 2025 increased by 12,2% to R31,4 billion,
supported by the inclusion of White Stuff in the UK and growth in TFG Africa. Online sales rose
55,3%, now contributing 14,7% of total Group sales. Operating profit declined 9,9% to R2,3 billion,
reflecting persistent macroeconomic pressures and higher promotional intensity across winter
months.
The period was marked by weak and uneven consumer demand in South Africa, particularly in June
and September, which impacted margins and profitability. Despite these headwinds, TFG continued
to manage its balance sheet conservatively, maintain investment in strategic growth areas, and return
capital to shareholders through a R1 billion share buyback and an interim dividend of 130 cents per
share.

Market performance and operational response

TFG Africa delivered sales growth of 5,3% whilst holding share across the Retail Liaison Committee
categories. Beauty continued to perform strongly, achieving sales growth of 23,6% supported by new
ranges and store expansion.

In the UK, White Stuff performed well, contributing to a 69% uplift in segmental sales, while Australia
remained subdued in line with the broader retail market.

In response to the ongoing trading pressure, TFG is taking decisive actions to enhance efficiency and
strengthen financial performance. These include a review of discretionary expenditure, optimisation of
trading space, tighter inventory management, and operational efficiencies across the supply chain
and logistics network. These initiatives will be implemented through the second half of the financial
year.

Anthony Thunström, TFG Chief Executive Officer, said:

“The macro environment has been tough for longer than anyone anticipated. June and September
were particularly difficult months across our markets. In these conditions, we are focused on taking
firm, practical steps to maintain financial discipline, improve efficiency, and ensure that our key growth
areas continue to develop.”

“We are taking clear, deliberate actions to manage costs, optimise our store footprint, and build
resilience into the business while advancing growth platforms like Bash, womenswear and beauty.
Our focus is on execution and stability through this cycle.”

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Outlook

TFG expects the second half of the financial year to remain constrained by weak consumer sentiment
and competitive trading conditions. The Group is maintaining a sharp focus on cost control, working
capital management, and capital efficiency, while continuing to invest selectively in growth categories
and digital capabilities.

“Our priority for the remainder of the year is disciplined execution and efficiency,” Thunström said.
“We will continue to adapt to trading conditions and ensure the Group remains well-positioned to
capture opportunities as the environment improves.”