Woolworths posts 3.2pc lift in third quarter sales | Australian Markets
Woolworths has posted a modest enchancment in group-wide sales for the third quarter, pushed by the energy of its supermarkets division regardless of cost-of-living pressures that remained entrance of thoughts for consumers.
But it revealed its long-struggling low cost division store Big W is set to cop a $70 million loss in the second half.
Woolworths on Thursday mentioned sales at its Australian grocery business lifted 3.6 per cent to $13.05 billion in the 13 weeks to the beginning of April, contributing a 3.2 per cent uplift in group sales to $17.3b.
Excluding fruit and greens and tobacco, average costs throughout its store community declined by 1.2 per cent. But greater meat costs offset falls in the associated fee of long life classes comparable to pantry, snacking, freezer and on a regular basis wants.
Group e-commerce sales jumped 15.7 per cent to $2.2b.
“Cost of living remains a concern for customers, however customer scores were largely stable during the quarter and sales growth rates improved modestly across the group,” Woolworths chief government Amanda Bardwell mentioned.
Sales in Big W slid 1.5 per cent to $986 million. While the clothes class returned to growth, elevated markdown investment was required to speed up the promote by means of of the spring/summer time vary.
Play growth was pushed by toys and continued robust momentum in its own model Somersault, which offset declines in gaming, workplace and stationery, and books.
The home class delivered a robust quarter because of improved product design, vary resets and higher availability.
“Clothing remains a challenge with Q3 growth reliant on clearance of spring/summer, and a slower start to autumn/winter which has continued into April,” Ms Bardwell mentioned.
“This has impacted BIG W’s profit outlook with the loss before interest and tax for H2 now expected to be approximately $70 million.”
Shares final trade at $31.57.
More to come back.
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