Jan 16, 2017
Whistles and Phase Eight owner rallies on jump in Christmas sales
Jan 16, 2017
South Africa's The Foschini Group (TFG) posted better than expected Christmas sales, the firm said on Monday, buoyed by its recent British acquisitions and sending its shares to a 20-month high.
The clothing and homeware retailer expanded in developed markets as a weak economy, tighter credit rules and tough competition hampered growth in its home market.
TFG, which bought Britain's Phase Eight in 2015 and last year added high street chain Whistles, said sales at its international division were 47.9% higher in December than a year ago.
"Christmas trading was above expectation, with TFG Group sales growth for December (November 27 to December 24) of 14.6%," the firm said.
For the nine months to December 24, total sales - which include its African and international divisions - rose 14.5%, the firm said, without disclosing the total value.
TFG's trading update is more upbeat than those of its South African competitors, who are struggling to grow sales in an economy forecast to have expanded by less than 1% in 2016.
Peers Truworths International last week flagged a drop in half-year profit as sales on in-store cards stalled due to tougher credit rules, while Woolworths Holdings also said it expects lower half-year profit.
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