By Siyanda Mthethwa
JOHANNESBURG (Reuters) -South African fashion retailer Truworths reported on Thursday flat group sales in the first 18 weeks of the 2026 financial year, as sales declined in its Africa business despite a strong performance in its UK operations.
The group’s retail sales were unchanged at 7.2 billion rand ($415.88 million) for the period from June 30 to November 2, compared to last year, Truworths said in a statement, adding that its gross profit margin improved on the prior year.
Its UK-based shoe retailer, Office, posted a 6% growth in retail sales at 113.3 million pounds ($152.06 million), which was driven by a strong demand in fashion footwear and a broad customer appeal.
In contrast, Truworths Africa reported a 4% drop in retail sales to 4.5 billion rand, easing from last year’s promotional activity boost. Online sales increased by 23.3%, making up 8.3% of the division’s revenue.
The retailer, which also owns brands such as Daniel Hechter, Uzzi and Naartjie, said several strategic initiatives have been initiated to reposition Truworths Africa for the future, without elaborating.
Truworths Africa’s credit strategy resulted in strained credit sales performances as the number of active accounts decreased by 2.8%. At the end of the first quarter ended September 28, its gross active trade receivables were 3.5% lower at 6.1 billion rand.
“As reported in the 2025 financial year-end results, the segment adopted a cautious approach to credit extension over the last 12 to 18 months, particularly to higher-risk credit customers, due to the challenging macroeconomic conditions in South Africa,” said the company.
However, this improved the credit quality as more customers paid on time and fewer were falling behind.
($1 = 17.3125 rand)
($1 = 0.7451 pounds)
(Reporting by Siyanda Mthethwa, Editing by Louise Heavens)
