Prime Highlight
- Woolworths expects half-year headline earnings to grow 7–12%, driven by strong Black Friday and Christmas sales.
- Robust demand across premium food, clothing, beauty, and home products contributed to positive growth in all business segments.
Key Facts
- Group turnover and concession sales rose 5.4% overall, with South African sales up 6.8% and food revenue increasing 7%.
- Sales momentum continued in the last seven weeks of the period, posting a 6.1% rise during the festive season.
Background
South African retailer Woolworths Holdings expects its half-year headline earnings to rise by up to 12%, supported by strong sales during the Black Friday and Christmas period. The company said demand for its premium food, clothing, beauty, and home products remained solid despite ongoing economic pressure in key markets.
Woolworths expects headline earnings per share to increase by between 7% and 12% for the 26 weeks ended December 28, compared with 152.8 cents in the same period last year. Group turnover and concession sales rose by 5.4%, or 6.1% in constant currency, as all business segments recorded positive growth.
In South Africa, Woolworths beat the market, with turnover and concession sales rising 6.8%. The food business drove growth, with revenue up 7% as the retailer kept investing in higher-quality food. Fashion, beauty, and home sales also improved, growing by 6.2%, helped by better product availability linked to supply chain improvements.
The company reported that sales momentum persisted during the last seven weeks of the period, covering the festive season, with a 6.1% increase. Woolworths noted that this trend points to market share gains and healthy underlying demand.
In Australia, Woolworths’ Country Road division faced a tough market. Even with low consumer spending and heavy discounting, sales rose 2.3%, helped by a brand refresh and changes to how the business operates.
The results contrast with those of budget fashion retailer Mr Price, which reported slower festive season growth of 3.6%. Mr Price said high debt costs and shifting spending habits continued to limit customer purchases.
