ABOUT THE FOSCHINI GROUP
📊 The Foschini Group is an investment holding company that owns over 3100 stores, including such well-known brands as Foschini, Markham, Exact, @home, American Swiss, Sterns, Totalsports, Sportscene and Duesouth.
📊 This high-value portfolio of 22 retail brands has a wide geographical reach spanning South Africa, greater southern Africa and an overseas market presence in the United Kingdom, employing over 22 000 people.
📊 Foschini functions across a number of subsidiaries including retail clothing, jewelry, cosmetics, accessories, homeware, furniture, cellphones and sporting and outdoor apparel.
📊 The Foschini Group trades on the Johannesburg Stock Exchange (JSE) under the stock symbol TFG with a market cap of over R41 billion.
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VISION & VALUES OF THE FOSCHINI GROUP
- The Foschini Group has reported strong growth despite a slowing consumer economy, with financial data recording an increase in turnover of 31% to R21.1 billion, plus an increase in cash sales of 18.4% from its African stores. As a result, investors who chose to purchase Foschini shares on the JSE have enjoyed a healthy increase in dividends.
- The diversification of the group’s product portfolio has added value for its customers, and the company has worked to manage its expenditure by receiving products from in-house designers and owned manufacturing facilities. Financial data reflects that 77% of the group’s turnover still comes from the South African market, where it has longstanding market presence and a sound reputation; however, Foschini also benefits from its international presence, gaining 13.7% from its overseas outlets and another 5% from Africa. As a result, the group is now able to hedge against continued Rand volatility through its stores of foreign currency.
- Based on this solid growth, the group has been working to expand its portfolio with the opening of 29 new stores on the African continent, as well as investing in market diversification into the UK with the acquisition of the fashion brand Whistles as well as franchise rights for Colette and Next.
- Foschini’s strategy aims to build on this success, as it works to buy into all LSM markets to cover a range of price points for both mid to high-end customers. The company also aims to invest in the expansion of its store footprint and to attract new market segments by enhancing its product range, while offering targeted cash and reward offers.
- The group’s solid performance in its existing markets coupled with its expansion plans have reflected a steady climb in its share price, and with analyst forecasts showing a good return on its expansion and investments, Foschini Group shares remain a solid buy for those who choose to purchase them on the JSE.
MARKET PERFORMANCE OF THE FOSCHINI GROUP
- While the live online stock charts show a recent drop in the Foschini Group’s share price, its sound growth strategy is set to benefit from an increase in consumer spending in 2019 and beyond. This will result in long-term yields for investors and good capital gains for the group.
- As such, Foschini already enjoys a wide market presence, owning some of the most recognizable and valued retail brands in South Africa today, cementing its market presence and securing its performance.
- Added to this, its overseas presence and foreign currency stores serve to shield it from Rand volatility in the short-term, giving the group room to invest shrewdly in its assets and capitalize on future growth.
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Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy FOSCHINI GROUP Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN FOSCHINI GROUP STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE FOSCHINI GROUP STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of FOSCHINI GROUP stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy FOSCHINI GROUP stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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