South African fashion retailer Truworths (TRUJ.J) reported flat group sales for the first 18 weeks of its 2026 financial year, as weaker performance in its African operations offset gains in the United Kingdom.

Africa Business Faces Sales Decline

From June 30 to November 2, Truworths’ retail sales remained steady at 7.2 billion rand ($415.88 million), while its gross profit margin improved compared to the prior year. The Africa division saw retail sales drop 4% to 4.5 billion rand, reflecting the easing of promotional boosts from the previous year. Online sales in Africa, however, grew 23.3%, contributing 8.3% of total divisional revenue.

The retailer cited cautious credit extension strategies as a factor impacting sales, noting that the number of active credit accounts fell 2.8%, while gross trade receivables decreased 3.5% to 6.1 billion rand. Truworths emphasized that this cautious approach improved credit quality, with more customers paying on time.

UK Operations Drive Growth

Truworths’ UK footwear retailer Office reported a 6% increase in retail sales to £113.3 million ($152.06 million), driven by strong demand for fashion footwear and broad customer appeal.

Strategic Initiatives Underway

Truworths, which owns brands including Daniel Hechter, Uzzi, and Naartjie, stated that strategic initiatives have been launched to reposition its African operations, although the company did not provide detailed plans.

“As reported in the 2025 financial year-end results, the segment adopted a cautious approach to credit extension over the last 12 to 18 months, particularly to higher-risk customers, due to challenging macroeconomic conditions in South Africa,” the company said.