THE FOSCHINI GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1937/009504/06)
Ordinary share code: TFG
ISIN: ZAE000148466
Preference share code: TFGP
ISIN: ZAE000148516
(“TFG” or “the Company” and together with its affiliates “the Group”)


TRADING UPDATE FOR Q2 FY2023 AND THE SIX MONTHS ENDED 30 SEPTEMBER 2022 AND
TRADING STATEMENT

SALIENT FEATURES
    -  Solid performance in Q2 FY2023 with Group retail turnover growth of 31,0%
       compared to Q2 FY2022, despite continued pressure on consumers;
    -  Robust performance from TFG Africa in Q2 FY2023 with retail turnover growth
       of 22,5% compared to Q2 FY2022;
    -  Like-for-like retail turnover growth for TFG Africa in Q2 FY2023 of 6,4%
       compared to Q2 FY2022;
    -  Cash retail turnover growth for TFG Africa in Q2 FY2023 of 24,3% compared
       to Q2 FY2022. Cash retail turnover for Q2 FY2023 now contributes 71,4% to
       total TFG Africa retail turnover and 80,8% to total Group retail turnover;
    -  Continued market share gains in Men’s and Women’s categories according to
       the Retail Liaison Committee (increase in market share to 16,7% for H1
       FY2023 compared to 16,4% for H1 FY2022);
    -  TFG London continued to perform well in Q2 FY2023 with retail turnover
       growth of 4,4% (GBP) compared to Q2 FY2022;
    -  TFG Australia delivered a strong 104,5% (AUD) growth in retail turnover in
       Q2 FY2023 compared to Q2 FY2022. Q2 FY2022 was impacted by severe COVID-
       19 closures and restrictions;
    -  Group online retail turnover contracted 6,9% as consumers returned to
       stores during Q2 FY2023. Online retail turnover contributed 8,1% (Q2
       FY2022: 11,4%) to total Group retail turnover for Q2 FY2023; and
    -  The Tapestry Home Brands (“Tapestry”) acquisition was implemented with an
       effective date of 1 August 2022 and has been incorporated into these results
       from that date.


OPERATING CONTEXT

The Group continued its strong start to the 2023 financial year.

ESKOM LOAD SHEDDING

TFG Africa lost c.99,000 trading hours during Q2 FY2023 and c.132,000 trading
hours during the first half of FY2023 due to continued load shedding across all
provinces in South Africa. This represents 4.5 times and 2.6 times the lost trading
hours over the same periods in the previous financial year, respectively.

In the UK, consumers remained under pressure as UK inflation in July 2022
breached double digit growth for the first time since the 1980’s.

Australia continues to outperform expectations despite increasing fuel and
housing prices, which are driving living costs to record highs.

TFG AFRICA PERFORMANCE UPDATE

In TFG Africa, customer demand for the Group’s products continued to grow strongly
in the second quarter. Retail turnover growth of 22,5% was achieved in Q2 FY2023
(compared to Q2 FY2022), partly supported by the acquisition of Tapestry, with
effect from 1 August 2022.
Positive retail turnover growth was achieved across all merchandise categories,
with Homeware retail turnover growing at 92,8% (including Tapestry). Growth in
clothing retail turnover was supported by the Group’s expanded ‘quick response’,
local clothing supply chain and sourcing capabilities.

TFG Africa’s like-for-like retail turnover growth increased 6,4% during Q2 FY2023
(compared to Q2 FY2022).

The growth in TFG Africa’s retail turnover, compared to the same period in the
previous financial year, in the respective merchandise categories was as follows:

                                                        Q2 FY2023 contribution to
                                        Q2 FY2023 vs.           TFG Africa retail
 Merchandise category                       Q2 FY2022                    turnover
 Clothing                                       19,9%                       72,0%
 Homeware                                       92,8%                       11,9%
 Cosmetics                                      10,3%                        2,9%
 Jewellery                                       5,4%                        4,3%
 Cellphones                                      2,2%                        8,9%
 Total TFG Africa                               22,5%                      100,0%



                                                        H1 FY2023 contribution to
                                        H1 FY2023 vs.           TFG Africa retail
 Merchandise category                       H1 FY2022                    turnover
 Clothing                                       16,5%                       74,4%
 Homeware                                       56,9%                        9,8%
 Cosmetics                                       5,8%                        2,9%
 Jewellery                                       4,8%                        4,1%
 Cellphones                                      0,2%                        8,8%
 Total TFG Africa                               16,9%                      100,0%

Cash retail turnover for Q2 FY2023 grew by 24,3% compared to the same quarter in
FY2022 and for the quarter now contributes 71,4% to total TFG Africa retail
turnover.

Credit retail turnover for Q2 FY2023 grew by 18,3% compared to the same quarter
in FY2022. For the six months ended 30 September 2022, credit retail turnover grew
by 15,8% compared to the same period in FY2022. Average acceptance rates for new
accounts declined to 21% (H1 FY2022: 24%), as overall credit retail turnover
continues to be purposefully restricted by more stringent acceptance criteria in
line with the current constrained economic conditions.

Online retail turnover for Q2 FY2023 grew by 18,7% compared to the same quarter
in FY2022. Online retail turnover contributed 3,0% to total TFG Africa retail
turnover for Q2 FY2023 (Q2 FY2022: 3,1%).

TFG LONDON PERFORMANCE UPDATE

TFG London’s performance for Q2 FY2023 was pleasing, especially in respect of the
further gross margin expansion, which was achieved despite the tough economic
conditions and high levels of inflation which has seen consumer wallets stretched
and spending habits adjust.

The growth in TFG London’s retail turnover compared to the same period in FY2022
was as follows:
                                               Q2 FY2023 vs.       H1 FY2023 vs.
                                                   Q2 FY2022           H1 FY2022
Retail turnover
growth – GBP
denominated                                              4,4%              21,2%
In line with expectation and the increased footfall in stores, online retail
turnover from TFG London’s own sites contracted 16,2% in Q2 FY2023 compared to
the same quarter in FY2022, while retail turnover from third party online channels
also declined by 4,1%. In total, the contribution of online retail turnover for
the quarter was at 36,6% (Q2 FY2022: 43,0%).

TFG AUSTRALIA PERFORMANCE UPDATE

TFG Australia    saw impressive retail turnover growth as the economy continued to
make a strong   recovery post COVID-19 restrictions. The prior comparative period
was adversely   impacted by substantial closures and restrictions in Q2 FY2022, with
approximately   50% of stores closed in August and September 2021.

The Australian economy continues to successfully navigate global supply chain
issues, a tight domestic labour market and above average inflation.

Online retail turnover for Q2 FY2023 was down 25,9% compared to the same quarter
in FY2022, contributing 6,5% to total TFG Australia retail turnover for the quarter
(Q2 FY2022: 17,8%) as previously locked-down shoppers returned to stores.

The growth in TFG Australia’s retail turnover compared to the same period in
FY2022 was as follows:


                                                  Q2 FY2023 vs.       H1 FY2023 vs.
                                                      Q2 FY2022           H1 FY2022
Retail turnover
growth – AUD
denominated                                               104,5%              48,7%


GROUP PERFORMANCE UPDATE

Overall, the Group continued to build on the strong performance of the first
quarter, notwithstanding the tough economic conditions, and delivered growth in
Q2 FY2023 of 31,0% compared to the same quarter in FY2022. For the six months
ended 30 September 2022, the Group delivered growth of 23,5% compared to the same
period in FY2022.

The retail turnover growth when compared to the same period in FY2022 in each of
our business segments was as follows:

                                              Q2 FY2023                   H1 FY2023
                                           contribution                contribution
                               Q2 FY2023       to Group   H1 FY2023        to Group
                                     vs.         retail         vs.          retail
Business segment               Q2 FY2022       turnover   H1 FY2022        turnover


TFG Africa (ZAR)                   22,5%          67,2%       16,9%           65,6%


TFG Australia (ZAR)               122,3%          19,6%       56,5%           19,5%


TFG London (ZAR)                    4,2%          13,2%       20,3%           14,9%


Group (ZAR)                        31,0%         100,0%       23,5%          100,0%
Group online retail turnover was subdued in Q2 FY2023, declining 6,9% compared to
the same quarter in FY2022 as consumer spend in stores continued to increase. The
contribution of online retail turnover to total retail turnover for the quarter
was 8,1% (Q2 FY2022: 11,4%).

OUTLOOK

The Group continues to invest in its key strategic initiatives to further
strengthen its differentiated business model. It has made further progress on its
key strategic objectives and its speciality brand business portfolio which remains
very well positioned for further organic and inorganic growth, despite the current
economic challenges. A specific focus through to the end of the financial year
will be the continued integration of the Tapestry business, to ensure that we
extract the maximum value from our investment.

TRADING STATEMENT

In accordance with the JSE Limited Listing Requirements, shareholders are advised
that earnings per share ('EPS'), diluted EPS, headline earnings per share ('HEPS')
and diluted HEPS for the six months ended 30 September 2022 (‘current period’)
compared to the six months ended 30 September 2021 ('prior period’) are expected
to be within the ranges reflected below:

                         Reported                   Expected

                        Six months
                          ended 30
                         September
                            2021       Six months ended 30 September 2022

                           Cents           Cents               % increase

 Basic earnings per
 ordinary share            319,5      431,3 to 495,2        35,0 to 55,0

 Diluted earnings per
 ordinary share            318,3      429,7 to 493,4        35,0 to 55,0

 Basic headline
 earnings per
 ordinary share            393,4      424,9 to 503,6         8,0 to 28,0

 Diluted headline
 earnings per
 ordinary share            391,8      423,1 to 501,5         8,0 to 28,0


The expected earnings ranges have been impacted, inter alia, by the following:
   • The COVID-19 pandemic and the related government-enforced lockdowns in the
      UK and Australia during the prior period, as previously reported; and
   • Store closures in South Africa during the prior period as a result of civil
      unrest experienced in July 2021, and as previously reported.

The information contained in this announcement, including estimate financial
information, is the responsibility of the board of directors of TFG and has not
been audited, reviewed or reported on by the Group's external auditors.

The Group's financial results for the six months ended 30 September 2022 will be
released on SENS on or about 11 November 2022.

Cape Town
25 October 2022

Sponsor:
Rand Merchant Bank (A division of FirstRand Bank Limited)