The group reported a 3% jump in turnover to R3.77-billion from R3.66 billion. Gross profit grew in line with revenue to R1.6-billion from R1.5-billion last year, while the group maintained gross profit margin at 41.3%.

The interim dividend was steady at R1.18c per share.

Fashion retailers have all enjoyed a strong run over the past few years but are now starting to see a slowdown in consumer activity. Overall consumer expenditure is expected to remain good over the medium term.

Trading at price:earnings ratio of 6.6 times, Foschini is not considered expensive, but the share is a buy only to longer-term investors. — PSG Online