The fashion retailer Truworths International has disclosed decreases in both full-year sales and headline earnings for its fiscal year 2026, which ended at the close of June.
In a business update and voluntary trading statement issued on Thursday for the 52-week period concluding on June 28, the JSE-listed company projected that headline earnings per share (Heps) and basic earnings per share (EPS) are expected to decline by 2% to 4% year-on-year. This follows a 0.9% decrease in overall group retail sales, amounting to R21.8 billion.
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A tale of two markets in Truworths interims
Truworths feels the pinch in SA
The report mentioned that a brief recovery among consumers in South Africa and the UK at the start of 2026 was swiftly interrupted by geopolitical tensions in the Middle East, leading to a spike in global oil prices that adversely affected consumer confidence.
After a sluggish first half marked by global trade tensions and cautious household spending, the second half initially demonstrated potential. In South Africa, decreasing inflation, anticipated interest rate relief, and a positively received national budget in February 2026 suggested a rebound in consumer confidence.
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Nevertheless, external geopolitical developments quickly altered this positive trend in both primary operating markets – South Africa and the UK.
“Within a few days, this optimistic outlook was dimmed by external happenings. The intensification of conflict in the Middle East triggered a pronounced increase in global oil prices and renewed inflationary pressures, with rising fuel costs affecting consumers’ discretionary income, who had just begun to experience some relief,” remarked Truworths.
“As the second half progressed, sentiment soured across both South Africa and the UK,” it continued.
The reduction in group sales was also partly due to currency translation effects, as the rand appreciated against the British pound during the second half.
Segment Overview:
- Truworths Africa: Retail sales fell by 2.1% to R14.2 billion. However, online sales soared by 21.5%, contributing 8.1% to segment sales. The percentage of active account holders eligible to make purchases dropped to 77% (down from 79% in 2025), reflecting significant pressure on customers’ disposable income. Product price deflation averaged 0.4%.
- Office UK: Demonstrated relative market outperformance, with retail sales increasing by 4.9% in Sterling to £334.1 million. In rand terms, sales edged up by 1.3% to R7.6 billion. Online sales accounted for 44.7% of segment turnover, aided by an 8.1% rise in trading space.
Earnings Forecast
The financial performance metrics for the 52-week period ending June 28, 2026, are expected to fall within the following ranges:
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| Metric | 2025 Reported (cents) | 2026 Estimated range (cents) | Estimated change (%) |
| Headline earnings per share | 752.1 | 722 to 737 | -2% to -4% |
| Basic earnings per share | 745.2 | 715 to 730 | -2% to -4% |
Truworths reaffirmed that, despite challenges in top-line sales, its fundamental position remains strong, underpinned by a healthy balance sheet, a net cash position, prudent credit management, and growth in e-commerce platforms.
The group’s audited annual financial results are anticipated to be released on or around August 27, 2026.
Truworths International’s share price experienced a slight decline on Friday, and the stock has fallen just over 3% so far this year. Its competitor in the upscale fashion retail sector, TFG, has also encountered difficulties, with its share price retreating to levels not seen since 2010, mainly due to its own internal challenges as well.
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