South African retailer Woolworths Holdings said on Thursday it expects annual profit to rise modestly after a tough second half, as higher fuel prices, inflation and interest rate rises linked to the conflict in the Middle East curbed consumer spending.
• Woolworths said headline earnings per share (HEPS) for the 52 weeks ended June 28 likely increased by 2.5% to 7.5%, to between 274.8 cents and 288.2 cents from 268.1 in the previous year;
• Group turnover and concession sales rose 4.3%, or 4.8% on a constant-currency basis. However, second-half growth slowed to 3.3%;
• Woolworths South Africa delivered turnover and concession sales growth of 5.4%, with the food business up 5.7%, while the fashion, beauty and home unit grew sales by 4.4%;
• Promotional activity and clearance of excess inventory pressured margins in the fashion, beauty and home division;
• In Australia and New Zealand, Country Road Group sales rose 1%, although second-half sales declined 0.5%.
• Country Road returned to full-year profitability due to the reduced cost of business and tighter control of discounting.
- Woolworths Holdings expects a modest annual profit rise despite a challenging second half impacted by higher fuel prices, inflation, and interest rate hikes linked to Middle East conflict.
- Headline earnings per share (HEPS) for the year ended June 28 are projected to increase by 2.5% to 7.5%, reaching between 274.8 and 288.2 cents.
- Group turnover and concession sales grew 4.3% (4.8% constant currency), but second-half growth slowed to 3.3%.
- Woolworths South Africa saw 5.4% sales growth, with food up 5.7% and fashion, beauty, and home sales up 4.4%; margins were pressured by promotions and inventory clearance in the latter division.
- In Australia and New Zealand, Country Road Group sales rose 1% but declined 0.5% in the second half; it returned to full-year profitability through cost reductions and tighter discount control.
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• Group turnover and concession sales rose 4.3%, or 4.8% on a constant-currency basis. However, second-half growth slowed to 3.3%;
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• Promotional activity and clearance of excess inventory pressured margins in the fashion, beauty and home division;
• In Australia and New
• Country Road returned to full-year profitability due to the reduced cost of business and tighter control of discounting.
