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Johannesburg - Analysts expect retail group Foschini to report positive interim numbers to end-September on Thursday, thanks to a repositioning of its women's clothing division.
Analyst at RMB Morgan Stanley said the group had been successful in repositioning its Foschini Stores division and is expecting earnings growth of about 10%.
Zahira Osman of Afena Capital said Foschini's second half of the 2009 financial year showed a marked improvement compared with the first half, particularly within the clothing division.
This trend continued as recently reported in the five-month update. The trading update reported an 8.3% growth in total sales, and a 12% growth within the clothing division, including the contribution from new stores opened, noted Osman.
"Based on this most recent update, sales growth for the interim should be positive, especially given the lower comparable base in the prior period," she said.
Space rollout was also expected to have boosted Foschini's market share as the group planned to open 120 new stores as part of its ambition to grow trading space by 9% to 10% in the current year.
The health of the debtor's book is also likely to be closely watched by the market.
Foschini is largely a credit retailer with the risk exposure of bad debt as consumers continue to feel the recession pinch.
Group CEO Doug Murray expressed satisfaction in the performance of the group's debtor's book in the last trading update, given the recessionary climate.
- Fin24.com