Truworths feeling the pinch in SA

Upmarket retailer Truworths International released a business update on Thursday, just after the JSE’s close, for the 26-week period ended 28 December 2025, revealing a tale of two markets.

While the group’s South African operations continue to face significant headwinds, its UK-based Office segment has delivered a robust performance despite global macroeconomic pressures.

Read: Truworths plans new approach to grow in the market

Group retail sales remained flat at R12.5 billion, unchanged from the prior period. However, a deeper look into the numbers shows a widening gap between its African and European business segments.

South African consumers under pressure

Truworths Africa saw its retail sales dip by 3.6%, as local consumers continue to grapple with high living costs and financial strain. Cash sales fell by 5.8%, while account sales, which make up 71% of the segment’s revenue, decreased by 2.7%.

Despite the slump, there are “early signs of improvement” on the horizon for the local economy. The group noted that a stronger rand, stabilising inflation (around 3%), and lower fuel prices could offer some much-needed relief to the South African retail landscape in the coming months.

Read:

In contrast, Office UK proved to be a standout performer for the Truworths group. Retail sales for the footwear specialist increased by 6.4% in sterling terms (reaching R4.5 billion).

This growth was bolstered by a strong online presence, with digital sales now accounting for nearly 46% of the segment’s total revenue.

The group attributed this success to Office’s “unique positioning” and a successful store remodelling programme, which Truworths plans to continue throughout 2026 with a projected space increase of up to 12%.

Read: Truworths slides as it flags lower full-year earnings

The group’s share price lost just over 1.5% on Friday as the market digested the update.

Truworths’s share price

Credit and earnings outlook

Truworths is maintaining a “measured approach” to credit expansion in Africa, given the challenging operating environment. Interestingly, the number of active accounts saw a marginal increase of 0.6%, though the group remains disciplined in its lending to higher-risk segments.

Key financial estimates:

• Earnings per share (EPS): Expected to grow by up to 2% (489-499 cents).
• Headline earnings per share (Heps): Also projected in the 0% to 2% growth range.

Shareholders can expect the interim results to be released on 26 February 2026.

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.