South African retailer TFG reported an 18.1% rise in half-year earnings, supported by progressively moving clothing manufacturing back home and by the acquisition of the owner of the Coricraft, Volpes and Dial-a-bed chains.
The clothes, homeware and jewellery retailer said headline earnings per share (HEPS), the main profit measure in South Africa, came in at 464.6 cents in the six months ended Sept. 30, up from 393.4 cents.
The owner of British womenswear brands Hobbs and Whistles and the local Foschini and Markham clothing brand has been bringing garment production closer to home in the past few years to reduce reliance on strained global supply lines and associated rises in shipping costs and delivery times.
During the reporting period, TFG has been able to churn out clothes faster than before to keep up with strong demand and with fast fashion trends.
Group retail turnover rose by 23.5% to R23.5 billion ($1.35 billion), thanks also to 159 store openings, while gross profit rose 24.8% to R11.6 billion.
Sales were also boosted by the acquisition of Tapestry Home Brands, which was incorporated from Aug. 1. As a result of the addition, group homeware sales jumped 56.9%.
TFG's Australian and London divisions continued to make a strong recovery since the easing of COVID-19 restrictions, with customers returning to stores. Both enjoyed rises in sales in their local currencies, by 48.7% and 21.2%, respectively.
Reuters