Woolworths Sees HEPS Rising 2.5%-7.5% as 3.3% Second-Half Sales Growth Squeezes Margins
Updated
Updated · Finimize · Jul 30
Woolworths Sees HEPS Rising 2.5%-7.5% as 3.3% Second-Half Sales Growth Squeezes Margins
3 articles · Updated · Finimize · Jul 30
Summary
274.8-288.2 cents in headline EPS is Woolworths Holdings’ forecast for the year ended June 28, up from 268.1 cents despite weaker momentum late in the year.
3.3% second-half growth in group turnover and concession sales trailed the full-year 4.3% pace, while discounting to clear excess fashion inventory pressured margins in its fashion-led businesses.
5.7% growth in Woolworths’ food unit outpaced the 4.4% rise in fashion, beauty and home, helping offset softer consumer demand.
Country Road Group lifted full-year sales just 1% and saw second-half sales slip 0.5%, but returned to profitability after cost cuts and tighter control of markdowns.
The earnings outlook points more to margin management and operating leverage than to a broad rebound in spending across South Africa, Australia and New Zealand.