TFG London falls into the red

TFG London, which owns fashion brands Hobbs, Phase Eight, Whistles and White Stuff, posted a 29.4% year-on-year increase in retail turnover to £488m during the year.

However, excluding White Stuff, full-year sales were flat at £296m.

White Stuff, which was acquired by TFG London in October 2024, delivered pro-forma sales growth of 4.3% to £192m during the period.

After a non-cash impairment charge relating to Phase Eight, the division reported an operating loss of £21m, compared with a £23m profit in the previous year.

The Phase Eight impairment amounted to 687 million South African rands (£31.2m), contributing to a wider decline in group profitability.

TFG said profitability in the UK business was affected by weak demand for occasionwear, softer trading through department store partners and disruption caused by a cyber incident at a key online concession partner.

The group also continued to rationalise its UK store estate during the year, closing a net 50 stores. TFG London opened 48 stores and closed 98, leaving it with 649 stores across the UK and Ireland at year-end, down from 699 a year earlier.

The division accounted for 18.2% of group sales during the year.

Across the wider group, revenue increased 7.2% to R67.1bn (£3bn), supported by strong online growth of 31.7%.

Operating profit before impairments and acquisition costs fell 22.1% to R4.9bn (£220m) as margin pressure and weaker second-half trading weighed on performance.

Looking ahead, TFG said it would continue to review operating costs, capital expenditure plans and store portfolio economics amid ongoing uncertainty in consumer demand.

In the nine weeks to 30 May 2026, TFG London reported signs of improvement with a sales growth of 1.7%, while group gross margins were around 100 basis points ahead of the prior year.

TFG said: “The UK continues to experience a challenging retail environment, with discretionary consumer demand constrained by elevated living costs and subdued consumer confidence.

“Profitability will remain dependent on disciplined gross margin and cost management.”