TFG, the owner of American Swiss, Totalsports, Jet and Markham, has returned to headline profit after its first-ever loss in its 2021 financial year, when lockdowns in the UK, Australia and SA resulted in forced store closures.
The retailer released a trading statement reporting that headline earnings per share, the main profit measure used in SA, would increase by at least 364c from a loss of 91c for the half year to end-September.
The group’s results are not entirely comparable due to more shares on offer, as it raised R3.8bn through a rights issue in 2020 to pay down debt and buy retailer Jet.
The 2022 first-half results also include revenue from the discount Jet stores that it bought in September 2020, and were not included in the previous trading period.
In 2021, TFG impaired a R2.7bn investment in the UK business that owns brands that sell women’s office and evening wear, which were not in demand in lockdown. The UK business was forced to keep stores closed for 50% of the 2021 financial year to end-March.
But at a media event this week, CEO Anthony Thunström said the UK business, which had given him “sleepless” nights, was back on track, amid the reopening of the UK economy and the end of lockdown restrictions.
Back in SA, TFG reported that the looting in KwaZulu-Natal would cost it R613m. It had received R200m of its total R613m insurance claim so far.
Thunström said walking down West Street in Durban after the civil unrest was distressing, as he witnessed stores that had been looted, then stripped of all shop fittings, burnt and finally flooded, after the copper piping was stolen.
Of the more than 3,000 TFG stores in SA, 198 were damaged with 146 now open, and 24 on track to reopen soon.
But 29 stores will only reopen in 2022, due to extensive structural damage caused to the centres they were located in.
Thunström said the business had moved staff working at the stores that remained shut, in some cases temporarily relocating them, to other stores, to save jobs.
At a recent media event, he said total losses including vandalism, theft and business interruption from stores unable to trade would add up to about R1bn.
TFG is assisting in the rebuilding of two factories in KwaZulu-Natal that were severely damaged. Those are not owned by TFG, but its supply is mostly to the company.
TFG’s share price rose 0.11% to R131,49 in midmorning trade.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.