Tarocash and YD parent company The Foschini Group (South Africa) has reported a 7.7 per cent sales slip in its Australian market for the second half of its 2025 financial year.
The second-half sales slip is down further compared to first half sales, which were down 4.1 per cent.
TFG is listed on the Johannesburg Stock Exchange in South Africa, which follows a financial year from April 1 to March 31.
TFG’s Australian market now makes up 15.2 per cent of total group sales, which includes fashion retail brands such as Tarocash, YD, Connor and Rockwear.
According to the group, its Australian market continued to face difficult trading conditions “with consumers under sustained cost-of-living pressure.”
It reported that sales in the region were 2.6 per cent lower in AUD, with a mixed performance throughout the second half in a highly promotional market, which was also impacted by cyclone Alfred in the fourth quarter. Other fashion companies have reported similar statements regarding a highly promotional market in Australia, including Myer and luxury online platform Cettire.
“Gross margin was protected by deliberate inventory management and trading strategies, ending 80 basis points lower at 64.3 per cent,” TFG reported. “With half the A$18 million contraction in gross profit protected by savings in costs and overheads, the segment still returned an impressive EBIT (before brand impairment charge) of A$81 million, equating to 10.9 per cent of sales.”
TFG also reported a brand impairment charge of $5 million relating to the carrying value of the Tarocash business. According to TFG, this was trimmed by 11.4 per cent because of the transfer of its "big and tall" business to specialty brand Johnny Bigg.
“The brand equity generated by Johnny Bigg is not recognised as an asset under IFRS [International Financial Reporting Standards] but is more than reflected in profit.”
Store sales across TFG Australia led the overall decline, dropping 3.4 per cent, while online sales lifted by 7.3 per cent and now contribute 8.1 per cent to total TFG Australia sales.
The group’s other key markets include London, with a share of 15.1 per cent, and Africa which holds the highest percentage sales share of 69.7 per cent. TFG owns 37 retail brands globally across clothing, footwear, jewellery, technology and lifestyle.
In the most recent outlook, TFG reported that Australia sales contracted by 3,4 per cent in the eight weeks to May 24, 2025.
“Although trading conditions remain challenging, the economy appears to be stabilising with two quarter-percent interest rate reductions in recent months. After a weaker April, sales in May grew by 2.3 per cent.
“Through our strong balance sheet and robust strategies, we are confident in our ability to deliver against our medium-and long-term targets, and we are well positioned to benefit from improved macroeconomic conditions and consumer recovery across all geographies to drive long-term shareholder value creation.”