Truworths International, the Cape Town-based fashion retailer led by CEO Michael Mark, posted a 4.7 percent decline in full-year net profit as elevated fuel costs and geopolitical tensions weighed on consumer disposable income in South Africa and the United Kingdom. It declared a lower final dividend while maintaining tight expense controls and executing share repurchases.

Earnings decline on consumer spending squeeze

The fashion retailer, dual-listed on the JSE and the Namibian Stock Exchange, reported a net profit attributable to equity holders of R2.66 billion ($165 million) for the 52-week period ended June 28, 2026, compared with R2.79 billion ($173 million) a year earlier, according to its audited annual results. Profit before tax declined 4.9 percent to R3.56 billion ($220.6 million) from R3.75 billion ($232.4 million) recorded in 2025.

Headline earnings per share fell 2.6 percent to R7.32 ($0.45) from R7.52 ($0.46), while diluted headline earnings per share declined 2.3 percent to R7.26 ($0.44). The board declared a final gross cash dividend of R1.53 ($0.09) per share, down from R1.7 ($0.1) a year earlier, bringing the total annual payout to R4.74 ($0.29) per share compared with R4.87 ($0.3) in the prior period. Dividend cover remained steady at 1.5 times headline earnings.

Truworths Africa sales ease; Office UK expands in Sterling

Group retail sales decreased 0.9 percent to R21.8 billion ($1.35 billion) from R22 billion ($1.36 billion), impacted by a stronger rand against the British pound in the second half. Merchandise sales edged up 0.1 percent to R21.3 billion ($1.32 billion), while gross profit margin remained unchanged at 51.3 percent.

In the Truworths Africa segment, retail sales fell 2.1 percent to R14.2 billion ($879.7 million) from R14.5 billion ($898.3 million), reflecting pressure on local household budgets. Ladieswear sales dropped 3.4 percent to R4.97 billion ($308 million), Identity fell 3.7 percent to R2.14 billion ($132.6 million), and childrenswear declined 6.4 percent to R1.33 billion ($82.4 million), while menswear slipped 0.3 percent to R3.66 billion ($226.9 million). In contrast, online sales in Africa climbed 21.5 percent to account for 8.1 percent of regional retail turnover.

In the United Kingdom, Office UK retail sales grew 4.9 percent in Sterling to £334.1 million ($452.2 million), supported by footwear demand and store developments. In rand terms, UK sales rose 1.3 percent to R7.59 billion ($470.3 million) from R7.49 billion ($464.1 million). Total revenue for the group slipped slightly to R23.03 billion ($1.43 billion) from R23.07 billion.

Truworths assets rise to $1.24 billion

Truworths generated R4.22 billion ($261.5 million) in cash from operations, compared with R4.84 billion in the prior period. The group returned R2.8 billion ($173.4 million) to shareholders through R1.85 billion ($114.6 million) in dividends and R949 million ($58.8 million) in share buybacks, repurchasing 17.1 million ordinary shares at an average price of R55.32 per share.

Total assets rose to R20.09 billion ($1.24 billion) as of June 28, 2026, from R19.9 billion ($1.23 billion) a year earlier, supported by store investments and property acquisitions. Total equity stood at R10.3 billion ($638.2 million) compared with R10.73 billion ($664.7 million), while retained earnings increased to R12.43 billion ($770.1 million) from R11.92 billion ($738.5 million).