TFG London acquisition strategies yield revenue surge amid macroeconomic headwinds

TFG Brands (London) Limited, the central UK hub for The Foschini Group (TFG), has reported a significant revenue increase for the financial year ended 29 March 2025. Despite a challenging global economic backdrop, the Group’s turnover rose to 377.5 million pounds, up 16.7 percent, bolstered by the successful acquisition of White Stuff in October 2024, which contributed 81 million pounds to the total turnover and 4.5 million pounds in profit during its initial months under the Group umbrella.

The Group’s operational profitability showed marked improvement, with adjusted EBITDA climbing to 51 million pounds from 33.8 million pounds in FY24. Operating profit also increased to 23.2 million pounds, up from 20.1 million pounds in the comparative period. While the Group reported a total loss after tax of 5.9 million pounds, this figure was heavily influenced by 18.9 million pounds in interest charges primarily related to parent company loans. Gross margin improved to 70.5 percent.

The reporting period was defined by a major expansion of the Group's physical and digital footprint. Following the White Stuff acquisition and the opening of 78 additional sites, including four new standalone stores in the United States, the Group’s portfolio grew to 699 stores globally by March 2025. This expansion helped offset underperformance in the concession channel, where sales declined by 14.7 percent. To support these growth initiatives, the Group utilized 77.6 million pounds in external bank borrowings while maintaining a cash balance of 25.9 million pounds at year-end.

In a filing with the Companies House, the company's directors expressed cautious optimism for the future, noting that while geopolitical unrest and trade uncertainties remain risks, the Group's resilient core consumer and diversified international presence provide a strong foundation for continued success. Other than White Stuff, the Group's brand portfolio consists of Phase Eight, Hobbs, Whistles and Inside Story.