• All Share : 54055.3799
    DOWN -0.13%
    Top40 - (Tradeable) : 47885.2672
    DOWN -0.06%
    Financial 15 : 17441.0104
    UP 0.11%
    Industrial 25 : 68360.6553
    DOWN -0.16%
    Resource 10 : 42904.2734
    DOWN -0.02%

  • ZAR/USD : 11.9025
    DOWN -0.11%
    ZAR/GBP : 18.3852
    DOWN -0.01%
    ZAR/EUR : 13.0722
    UP 0.05%
    ZAR/JPY : 0.0973
    DOWN -0.21%
    ZAR/AUD : 9.311
    UNCHANGED0.00%

  • Gold US$/oz : 1205.31
    UNCHANGED0.00%
    Platinum US$/oz : 1145.6
    UNCHANGED0.00%
    Silver US$/oz : 17.07
    UNCHANGED0.00%
    Palladium US$/oz : 782.38
    UNCHANGED0.00%
    Brent Crude : 65.37
    UNCHANGED0.00%

  • All data is delayed by 15 min. Data supplied by Profile Data
    Hover cursor over this ticker to pause.

Mon May 25 05:25:15 SAST 2015

Above-average wage hikes keep Foschini tills ringing

Reuters | 09 November, 2012 00:06
Rosebank outlet of @home, the specialist store which was launched by Foschin

South Africa's third-biggest listed clothing retailer, Foschini Group, reported a 19% rise in first-half profit due to a boost in consumer spending coming from above-average wage increases and historic-low borrowing costs.

Foschini, which runs 14 retail brands, said yesterday diluted headline earnings per share totalled 396.1c in the six months to end-September, compared with 333.3c a year earlier.

"For the first five weeks of the second half, retail turnover has continued at similar levels to the first half," Foschini said. It said sales increased 12.6% to R6.1-billion, helped in part by new stores and price increases. Same store sales grew 6.6%.

Although consumer spending is improving, analysts have warned that share prices for retailers may be over-valued, given what they can deliver. Shares in the company, which have gained more than 20% so far this year, were up 2.13% at R129.71 by 12.41pm, outperforming a 0.26% gain in the all share index. The share price rally this year, which mirrors similar or more gains for domestic retailers, has also been fuelled by expectations of healthy returns from Foschini's expansion into the rest of Africa.

The company runs 98 stores outside its home market in countries including Botswana, Nigeria and Zambia.

It plans to open a further 56 stores in countries where it already operates, and plans to enter Mozambique and Ghana in the next two years.

SHARE YOUR OPINION

If you have an opinion you would like to share on this article, please send us an e-mail to the Times LIVE iLIVE team. In the mean time, click here to view the Times LIVE iLIVE section.