Retail group Foschini on Thursday reported that its diluted headline earnings per share for the six months to September 2009 were at 231.9 cents, up 1.8% from the 227.7 cents reported in 2008.

The directors declared an unchanged interim ordinary dividend of 118 cents per ordinary share.

Retail turnover at R4.1 billion was up 7.9% from the R3.8 billion reported before.

Operating profit was at R890.2 million was up 6.4% to R836.5 million.

"Trading conditions in the first half of this year have been difficult and volatile, displaying no consistent trading pattern," said Foschini.

"In our latest annual report we anticipated that 2010 would be a challenging year as no clear trend in trading patterns was discernible.

"Although interest rates and inflation had continued to drop, we indicated that because of the lag effect, we expected the economy to start improving but only from the last quarter of our financial year," it said.

The group said in line with its strategy of investing for the longer term, it continued to grow trading space in certain of its formats that were under-represented.

Notwithstanding the difficult trading environment, all our trading divisions remain in good shape and are well placed to maximise any upturn in the economy, said Foschini, noting that same store turnover grew by 1.2%, while product inflation averaged approximately 8% for the period.

Credit sales as a percentage of total sales increased to 63.7% from 63.2%.

Looking ahead Foschini said retail turnover for the first five weeks of the second half remained difficult with turnover growth of 4.8%.

"The anticipated pick-up in the economy has not yet started and we expect that the retail environment will continue to be difficult for the remainder of the year.

"The second half of the year is heavily dependent on Christmas trading which will largely determine the performance of the group in the second half and for the year as a whole," it said.

Doug Murray, Foschini Group CEO, said the retail environment was expected to continue to be difficult for the remainder of the year.

"As always the second half of the year, which is heavily dependent on Christmas trading, will largely determine the performance of the group for the year as a whole," said Murray.