TFG credits diversification for resilient performance. The retailer has expanded its operations in the UK and Australia and has also seen a good take-up of online sales.

The Foschini Group (TFG) says it's had a difficult first half to its financial year in its three main geographies: SA, the UK and Australia. Still, it's managed to grow turnover strongly, thanks to acquisitions over the past year and a half. It says its diversification strategy in the UK and Australia has made it more resilient, as has its focus on controlling costs and investing in digital transformation.

That's paid off with a 15% rise in online buying in the six months to end-September after it added two additional TFG Africa brands to its online channel, including Donna and The FIX. Online turnover through 22 of its 28 brands now contributes 7.9% of group turnover.

Group retail turnover rose 28.6% to R15.9 billion in the six months to end-September, boosted by last year's acquisition of upmarket women's chain Hobbs in the UK and Australian menswear retailer Retail Apparel Group. Its gross margin improved to 53.6% from 51%. Headline earnings increased by 14.3% to a record R1.2 billion. Excluding the cost of acquisitions incurred in the prior period, headline earnings grew by 9.1%. Headline earnings per share came in at 5.6c, after the issue of 17.2 million additional shares last year diluted growth to 8.3%. It's declared an interim dividend of 330c per share, up 1.5%.

TFG expects trading conditions to remain challenging in all territories as consumer spending and business confidence remain under pressure.

The second half of the Group's financial year, as always, remains heavily dependent on Black Friday, Cyber Monday and Christmas trade," TFG said. "Retail trade performance for the first four weeks of our second half is at similar levels to the first half across TFG Africa, TFG London and TFG Australia."

TFG's shares closed 2.7% higher at R170.95 yesterday.