South African fashion retailer TFG reported a 5.5% rise in third-quarter turnover on Tuesday, thanks to its acquisition of budget clothing retailer Jet and strong online sales growth during the Covid-19 pandemic.
The announcement came even as its two main markets, Britain and South Africa, are reeling under subdued consumer demand due to lower spending and local restrictions.
Group turnover for the three months ended December 26 rose to R12.2 billion from R11.6 billion, the company said.
Its shares rose after the announcement and were up almost 10% at 1330 GMT.
TFG, formally known as The Foschini Group, said online group turnover rose 32.3% for the quarter ended December 26, with a 114.1% jump in TFG Africa. Group online sales contributed 12% to nine-month-ended December 26 overall group sales.
TFG Africa, it’s biggest unit which houses Jet stores, grew turnover by 14.7%, boosted by its clothing and homeware divisions.
Sales in TFG Australia, its third operating region, were up 0.4% in Australian dollars, supported by minimal lockdown restrictions in November and at the start of December, which resulted in a strong sales trend into Christmas, TFG said.
In London, sales performance continues to be negatively impacted by a government-enforced national lockdown and reduced levels of consumer demand for occasion and formal workwear. Sales plunged 41.4% in British pounds.
It said it does not expect a near-term recovery in sales in Britain amid the latest lockdown.
Excluding the Jet acquisition, which added R1.2 billion ($80.42 million) to group turnover, group third-quarter sales fell by 4.8% to R11.1 billion.
TFG bought Jet in September from struggling department chain owner Edcon after it filed for business rescue earlier this year.
On Tuesday it said it had received further approvals to buy the rest of Jet’s operations in Botswana, the Kingdom of Eswatini (formerly Swaziland), Lesotho and Namibia.