TFG – The Foschini Group – has released a trading statement for the last six months of the year, ending on 30 September 2025. The popular retailer is perhaps best known for enabling young adults, students and low-income earners to purchase items on credit.
As such, while TFG has recorded an increase in sales, it also noted that the majority were made using credit. Therefore, shareholders were warned of a decline in basic earnings, reports The Citizen. In fact, the money owed to TFG by its customers now amounts to R9 billion, an 8% increase over the same period in 2024.
TFG OWED BILLIONS
For those who don’t know, TFG owns 4 600 bricks and mortar stores like Foschini, Markham, Spotscene, Totalsport and @home. However, its Bash online platform represents more than 200 major brands – including Adidas, Cotton On Diesel, Nike and the list goes on. TFG online sales have grown by 40% driven by Bash.
“And credit sales grew by 8%, representing 27.4% of total sales. The quality of the debtors’ book is in line with the prior period, with an increase in provisioning since year-end reflective of book growth,” said TFG. In total, TFG sales grew by 12.7% to R29 billion, thanks to White Stuff. The aforementioned is a British fashion brand TFG acquired back in October 2024.
EARNINGS DOWN FOR TFG SHAREHOLDERS
Due to the increasing debtor’s book, TFG told shareholders that basic earnings per share will decline by roughly 20%. Earnings per ordinary share (EPS) will amount to 276.2 cents and headline earnings per ordinary share (HEPS) roughly 278.7 cents. Of course, TFG’s business model relies on interest accrued from credit purchases. The more interest the better, typically.
But the retailer does need its customers to pay up at some point. TFG Money is the company’s registered credit provider. When you open a Bash account, you’re able to purchase on lay-by and shop on account with TFG Money. This buy-now-pay-later scheme is possible thanks to its partnership with the Patrice Motsepe’s digital-only TymeBank.
Bash is also available as a mobile app on your phone. TFG says more than 2 000 new products drop each week on the app. And you get free delivery for purchases above R500. Not to mention 800 free collection points around the country for online purchases.
Do you shop on credit through TFG and Bash? What do you think of the online retailers’ offerings? And do you regularly pay your account? Let us know in the comments section below …