Bertina Engelbrecht's Clicks Group has lost $1.2 billion and the outlook is getting worse

Bertina Engelbrecht's Clicks Group has shed R19.7 billion ($1.2 billion) in market capitalization since January, with the company's share price tumbling more than 8% in a single trading session after the release of its interim results for the six months ended February 2026. The selloff has been one of the sharpest sustained declines among major JSE-listed retailers this year.

The interim results were not disastrous on paper. Group turnover grew 7.4% to R24.9 billion, diluted headline earnings per share rose 8.1% to 652.8 cents, and the board declared an interim dividend of 258 cents per share, up 8.4% on the prior year. Cash generated from operations came in at R1.9 billion, and the group returned R2.3 billion to shareholders through dividends and buybacks during the half.

The numbers were solid enough. The outlook was not. Engelbrecht warned that the consumer environment is expected to remain under significant pressure in the second half of the financial year, with rising fuel prices and associated inflationary pressures squeezing household spending, particularly among middle-income earners. The group also guided full-year diluted HEPS growth of just 4% to 9%, a range that disappointed investors expecting more from a company that had delivered stronger growth in prior periods.

The festive season had already flagged trouble. A January trading update revealed that intense competitor discounting and a warehouse management system rollout failure at Clicks' Cape Town retail distribution centre had disrupted product availability in Western Cape stores. Management estimated the system-related disruption alone cost approximately R120 million in lost retail sales.

Engelbrecht has not signaled any retreat on investment. Clicks still plans to open 40 to 50 new stores and 40 to 50 new pharmacies in the 2026 financial year, with 10 differentiated concept stores to be piloted in the second half. Capital expenditure of R1.3 billion has been earmarked, with 53% allocated to new store openings, pharmacy additions and refurbishments.

Pharmacy remains the group's strongest segment. Retail pharmacy market share strengthened to 24.9% from 24.2% in the prior period, with pharmacy sales growing 8.6% during the half. Distribution turnover grew 13%, driven largely by a 31.1% jump in revenue from preferred bulk supplier contracts.