South African fashion retailer Truworths International reported a modest rise in half-year profit on Thursday, supported by solid performance from its United Kingdom footwear business despite weak consumer spending across its African operations.
The retailer said headline earnings per share (HEPS) increased 1.3 percent to 495.4 cents for the six months ending December 28, placing earnings at the upper end of the company’s previously issued guidance range of 489 to 499 cents.
Group trading profit which excludes interest income rose 2.8 percent to 2.1 billion rand (US$132 million), reflecting improved operational efficiency and stronger international sales.
Investor confidence lifted following the results announcement, with Truworths shares gaining about 3.65 percent in afternoon trading in Johannesburg.
Group retail sales, however, remained flat at 12.5 billion rand, highlighting continued pressure on discretionary consumer spending, particularly in Southern Africa where households face elevated living costs, high interest rates and constrained disposable incomes.
Performance across the company’s African segment remained subdued. Retail sales at Truworths Africa declined 3.6 percent to 7.9 billion rand, underscoring the challenging retail environment in key regional markets.
Retailers across South Africa and neighbouring economies have reported cautious consumer behaviour as shoppers prioritise essential goods over clothing and fashion purchases amid persistent economic uncertainty.
In contrast, the group’s UK-based footwear subsidiary Office delivered strong growth, with sales rising 6.4 percent to 191.9 million pounds (US$259.7 million) during the reporting period.
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The improved UK performance helped offset weaker African sales and reinforced Truworths’ strategy of geographic diversification to balance cyclical pressures in its home market.
The company maintained its gross profit margin at 51.8 percent, unchanged from the previous year, reflecting disciplined inventory management and pricing strategies despite currency volatility and cost pressures affecting global retail supply chains.
Truworths also announced an interim dividend of 321 cents per share, representing a 1.3 percent increase, signalling management’s confidence in the group’s financial stability and cash generation capacity.
Analysts note that while international operations continue to provide earnings support, sustained recovery in the African business will depend largely on improvements in consumer confidence, inflation trends and borrowing costs.
South African retailers have faced a difficult trading environment over the past year as economic growth remains modest and household finances remain under strain. High debt servicing costs and slow wage growth have constrained discretionary retail spending, particularly in apparel segments.
Looking ahead, Truworths said it remains focused on managing costs, strengthening merchandise offerings and expanding digital retail capabilities to support long-term growth across markets.
The company’s diversified operating model is expected to remain a key buffer against regional economic volatility, although near-term performance will continue to reflect uneven consumer demand across its operating regions.
Despite ongoing macroeconomic headwinds, the latest results suggest the retailer has maintained earnings stability through international growth and operational discipline, positioning it cautiously for the remainder of the financial year.
