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 annual headline earnings per share (HEPS) to increase by 2.5% to 7.5%, reaching between 274.8 and 288.2 cents for the 52 weeks ended June 28.
- Group turnover and concession sales rose by 4.3% overall, or 4.8% on a constant-currency basis, with second-half growth slowing to 3.3%.
- Woolworths South Africa saw turnover and concession sales growth of 5.4%, with food sales up 5.7% and fashion, beauty, and home sales growing by 4.4%.
- Margins in the fashion, beauty, and home division were pressured by promotional activity and clearance of excess inventory.
- Country Road Group in Australia and New Zealand reported a 1% sales increase for the full year, with second-half sales declining by 0.5%, but returned to full-year profitability due to reduced costs and tighter discount control.
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.
