Woolworths Sees Up To 12% HEPS Growth As Festive Demand Lifts Sales Across South Africa And Australia
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Woolworths Holdings said it expects headline earnings per share to increase by between 7% and 12% for the 26 weeks ended Dec. 28, supported by demand for its premium food, clothing, beauty and home ranges during Black Friday and the holiday season.
The retailer said half-year HEPS is forecast to rise from 152.8 cents in the prior period.
Group turnover and concession sales rose 5.4%, or 6.1% in constant currency, with Woolworths citing positive sales growth across all divisions despite constrained macroeconomic conditions in both South Africa and Australia.
In South Africa, Woolworths reported “above-market” turnover and concession sales growth of 6.8%.
Its food business grew revenue by 7% as the company continued investing in premium food offerings.
Fashion, beauty and home turnover and concession sales increased 6.2%, and rose 6.4% on a comparable-store basis, which Woolworths linked to improved product availability following supply-chain initiatives.
The company said momentum held through Black Friday and the festive season, with sales growth of 6.1% in the final seven weeks of the period, which it said points to market-share gains and positive underlying volume growth.
In Australia, Country Road increased sales by 2.3%, or 2.5% on a comparable-store basis, as it navigated heavy discounting and weaker discretionary spending and benefited from a brand revamp and changes to its operating model.
Woolworths also pointed to a weaker picture at lower price points, noting that Mr Price reported festive-quarter sales growth of 3.6% versus 10.6% a year earlier, and said Mr Price cited high household debt-servicing costs and spending diversion into online betting as pressures on customers’ disposable income.
