RETAILING: Foschini Gains Market Share
Recent Western Cape Business News
The Cape Town-based Foschini Group Limited (TFG), which changed its name from Foschini Limited in the past year to better represent the group’s broad brand portfolio, has delivered a solid performance for the year ended 31 March 2011, pushing headline earnings per share up 21,3% to 632,3c a share.
Retail turnover rose by 15,5% to R9,9 billion during the period, spurred by sales of its clothing merchandise which increased by 19,5% in the second half of the year from 11,7% in the first half. A final dividend of 212,0 cents per share has been declared, an increase of 24,7%, resulting in a total dividend for the year of 350,0 cents per share.
Doug Murray, CEO of TFG says the positive consumer sentiment sparked by the soccer world cup last year was maintained and accelerated further in the second half of year, delivering Christmas sales above expectation.
He says the optimism has continued into the current financial year with sales for the first seven weeks of this financial year being encouraging and ahead of expectation.
In line with the group’s strategy of driving top-line growth, buying efficiencies achieved during the year were passed on to customers. These efficiencies were achieved as a result of supply chain initiatives and were assisted by the strong Rand. The group’s operating margin increased to 23,2%.
The group opened 100 new stores across all its operating divisions in the past year, increasing its trading area by 6,3%. But its same store growth remained strong with some divisions like exact! increasing same store sales by 20,4% and Markham by 16,9%.
He said all the divisions performed well in the past year. Foschini, which also comprises Donna-Claire, Fashion Express and Luella increased sales by 12,5% overall, with strong growth in the second half of the year of 17,7%. The R3,7-billion strong division has 484 stores countrywide.
Markham increased its store base by 13 to 247 stores around the country, increasing sales by 20,2%. After a good first half, trading improved in the second half with sales growth of 23,7%.
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