Foschini shares rise on positive trading update as Black Friday provides boost

Black Friday is becoming an increasingly important for SA retailers, with the Foschini Group [JSE:TFG] on Friday referencing record sales on the key trading date in its latest trading update.   

The retailer released an update for the the nine months to December 28, 2019, on Friday. 

"The Foschini Group Africa showed resilience across all merchandise categories and despite the high base of the past several years, produced turnover growth of 5.9%. This included a new record high Black Friday performance, which helped to offset the negative impact of the load-shedding experienced in South Africa during December," it said. 

The retailer's shares were trading up 2.2% at R159.36 a share at noon. 

Within Foschini's African operations, turnover at its key clothing division grew by 6.5%. Homeware grew by 7.8%, cosmetics 1%, jewellery 2.3% and cellphones 4.8%.  

"Cash turnover grew pleasingly by 11.2% whilst credit turnover declined by -1,0% as a result of the group’s prudent approach to credit in the current constrained economic environment," it said. 

The group's international operations showed mixed results. TFG London’s turnover declined 1.1%, with the group noting "continued footfall declines on the high street amidst Brexit uncertainty". 

Turnover rose by 11.4% in its Australian division, which it said was again given a boost by record Black Friday sales. 

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