TFG's retail array puts it ahead of peers
TFG, with its diversified consumer portfolio, trumped its local peers to be the only listed apparel retailer to record gains in a difficult year
Shares of TFG, which owns 22 brands including Foschini and Totalsports, have gained about 27% since the beginning of last year, compared to peers Mr Price, Truworths and Woolworths, which were down 17.8%, 14.23% and 27.9% respectively. Peter Takaendesa, a portfolio manager at Mergence Investment Managers, said this week that unlike its competitors, TFG had executed a better strategy. "If you look at the numbers, they have improved the quality of earnings by increasing the component of business coming from cash sales. It's now a much better-quality business because the contribution from cash sales has gone up," said Takaendesa. According to the group's annual report, TFG's cash sales for the 2016 financial year grew 18.4%, and represented 48.3% of turnover and 57.2% of total group sales. The group's broader range of merchandise categories - compared to its retail peers - has cushioned it against economic headwinds that have depressed the retail sector. Its brands include male apparel...
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