Business news feedSouth African retailer TFG rallies on jump in Christmas sales


Posted on Monday, 16 January 2017 09:48

South African retailer TFG rallies on jump in Christmas sales

January 16, 2017, 11:48 am

JOHANNESBURG (Reuters) - 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 percent higher in December than a year ago. "Christmas trading was above expectation, with TFG Group sales growth for December (Nov. 27 to Dec. 24) of 14.6 percent," the firm said. For the nine months to Dec. 24, total sales - which include its African and international divisions - rose 14.5 percent, the firm said, without disclosing the total value. Shares in TFG gained 6 percent to 169.60 rand by 0956 GMT, its highest since May 2015, compared with a 0.5 percent rise in the JSE's All-share index. 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 percent in 2016. 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.(Reporting by TJ Strydom, editing by Louise Heavens)

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