Menu
 
 
 

South Africa’s Woolworths sees up to 17.5% fall in profit

Half-year profit at South African retailer Woolworths Holdings could fall by as much as 17.5 percent, it said on Monday, sending its shares down more than 9 percent.

A combination of a recession and political turmoil have eroded consumer spending power in South Africa and Woolworths is facing tougher competition in Australia from the likes of H&M, and new entrant Amazon.

Woolworths, which sells groceries, food and homeware, said headline earnings per share – the main gauge of profit in South Africa – was likely to fall between 12.5 percent and 17.5 percent or 200.1 cents and 212.3 cents in the six months to December 2017.

Shares in Woolworths, similar in products and style to Britain’s Marks and Spencer, fell as much as 9.2 percent after the announcement before paring losses. At 0852 GMT it was down 5.5 percent at 59.85 rand ($4.85).

The retailer said group sales for the first half of the 2018 financial year increased by 2.5 percent, slower than a 6.7 percent rise in the first half of the 2017 financial year.

Woolworths said in August, it plans to spend 2.1 billion rand in South Africa in 2018 and $250 million in Australia in its David Jones and Country Road clothing brands.

($1 = 12.3329 rand)


 

Source

CNBCAFRICA

Read more...

Woolworths launches SA’s first retail branded MSC certified canned tuna

After four years of working closely with the Marine Stewardship Council (MSC) and WWF-SASSI, Woolworths has succeeded in securing an MSC-certified source of canned tuna, caught using the pole-and-line catch method, for its Woolworths branded canned tuna range. This latest Fishing for the Future milestone is particularly ground-breaking as versatile canned tuna is very much a household staple in many South African homes.

Read more...

Woolworths Holdings limited to acquire Politix, a leading Australian menswear business

Woolworths Holdings Limited (“WHL”) today announced that its wholly owned subsidiary, Country Road Group had entered into an agreement to acquire Politix, a market-leading retailer in Australian designer menswear. Politix has 75 stores, including 31 concessions across Australia and FY2016 sales of US$56 million. The agreement is subject to the fulfilment of certain conditions precedent normal for a transaction of this nature. The proposed acquisition will be funded through internal resources and is expected to be immediately EPS accretive.

Read more...

Has Woolies really lost its mojo?

  • Published in Retail

Investors made a rather dour pronouncement on prospects for Cape Town-based retailer Woolworths despite the company releasing sturdy interim results to end December 2015. At the time of writing Woolworths shares were well off the R106 high seen on the JSE in November last year.

Read more...

Tills jingling for Cape retailers

  • Published in Retail

CAPE TOWN headquartered retail conglomerates appeared to enjoy brisk Christmas trading with recent sales updates mostly confirming double digit growth. The trading statements – to an extent – allay fears that discretionary spending would dry up as consumers faced up to the prospect of lower salary increases and the prospect of higher interest rates as well as higher prices following the calamitous collapse in the rand against major international currencies. But the outlook for 2016 remains cautious, and local retailers are going to have to work extra hard to maintain margins and keep top line ticking over.

Read more...
Subscribe to this RSS feed

Industries

About us

Follow us

Follow us @BusinessNewsCT

BusinessNewsCT RT @ConcreteTrends: WIND ENERGY INDUSTRY COMMITS TO INVESTING IN SOUTH AFRICA https://t.co/OjJxM0Telh https://t.co/Dw06QdyqOR
13hreplyretweetfavorite
BusinessNewsCT RT @voltexsa: Amp up your summer with this and many other recession beating specials during all of November and December! Visit our website…