Fashion retailer Truworths is preparing for a significant boardroom transition as long-serving chairman Hilton Saven announces his retirement, ending a 23-year tenure with the group amid a challenging trading environment marked by weaker sales and declining earnings.
The company said on Friday that Saven will retire at the conclusion of its annual general meeting (AGM) on November 5. He joined the board in 2003 and became chairman a year later, overseeing the retailer through a period of expansion and transformation in South Africa and abroad.
The board has appointed director and lead independent director Hans Hawinkels as chairman-designate. He will assume the role after the AGM and also take over as chairman of the Nomination Committee while serving on the Social and Ethics Committee.
Board committees reshuffled
As part of the leadership transition, Hawinkels will relinquish his position as chairman of the Remuneration Committee but will remain a committee member.
Truworths said the board has not yet decided whether a new lead independent director will be appointed. Should the board determine that the position remains necessary, a further announcement will be made.
Independent non-executive director Wayne Muller will take over as chairman of the Remuneration Committee following the AGM and will also join the Risk Committee.
The changes form part of a broader restructuring of board responsibilities as the retailer navigates a difficult operating environment.
Tough trading conditions weigh on performance
The leadership changes come at a time when Truworths is facing pressure from subdued consumer spending and foreign exchange impacts.
The group reported a 0.9% decline in retail sales to R21.8-billion for the year ended June 2026. Truworths Africa, which remains the retailer’s largest operating segment, saw sales fall 2.1% to R14.2-billion.
Consumer weakness continued to affect both cash and credit purchases. Cash sales declined by 5%, while account sales dropped 0.9%. Online sales provided a bright spot, increasing by 21.5% during the year.
The group’s overall performance was also hurt by the stronger rand against the British pound during the second half of the financial year, which negatively affected reported sales.
Earnings expected to decline
The weaker sales performance is expected to translate into lower profitability, with Truworths forecasting a decline of between 2% and 4% in headline earnings per share.
The retailer expects headline earnings per share to come in between 722 cents and 737 cents for the financial year, reflecting the ongoing strain on consumer spending and broader economic conditions.
Despite these headwinds, the board expressed confidence in Hawinkels’ ability to guide the company through its next phase.
“The board congratulates Mr Hawinkels on his appointment as chairman and looks forward to his continued contribution to the growth and success of the company,” Truworths said in a statement.
- Hilton Saven, chairman of Truworths, will retire after 23 years with the group at the AGM on November 5.
- Hans Hawinkels has been appointed chairman-designate and will assume the role following the AGM.
- Truworths reported a 0.9% decline in retail sales to R21.8 billion for the year ended June 2026.
- Cash sales fell by 5%, account sales by 0.9%, while online sales increased by 21.5% during the year.
- The group expects headline earnings per share to decline by 2% to 4%, forecasting between 722 and 737 cents for the financial year.
