The Foschini Group (TFG) - which also owns Markham, Jet, @home, and American Swiss, among other retail brands - has seen a 32% increase in its turnover to a record R43.4 billion for the year to end-March.
Cash transactions contributed almost 80% of sales, while online sales now contribute more than 10% of total turnover.
Trading expenses improved – to 41.4% of retail turnover, from close to 45% before the pandemic - and its gross profit margin increase to 48.5% as strong demand for TFG’s products resulted in a higher proportion of full-price sales and fewer markdowns, the company says.
This contributed to a 40% increase in gross profit, to R21 billion, with headline earnings up 442% to R3.3 billion.
TFG says the quick response time of its local manufacturing operations helped to deliver products that were in demand among customers. Over recent years, TFG has switched its manufacturing to South Africa, away from China, and more than 72% of its clothing sold in the African market are now produced locally.
It plans capital investments of R2.1 billion in the coming year, and will open 10 new manufacturing business units. This will help to double jobs in its own factories, as well as associated facilities, from 5 200 this year to 11 200 by 2026.
It will also spend R600 million to open more than 350 new stores.
TFG’s net debt of R1.0 billion is at historic low levels.
The company declared a final dividend of 330c, on top of a half-year dividend of 170c. No dividend was declared in 2021.
Following the results announcement on Friday morning, its share price dipped 0.7% to R137.57 – some 20% below levels reached a year ago.