Woolworths Holdings Experiences Notable Profit Decline Amidst Weak Clothing Sales
Woolworths Holdings reported a 24.8% profit decline in the first half of the year, primarily due to weak clothing sales in South Africa and Australia/New Zealand. The headline earnings per share fell to 152.8 South African cents, with an interim dividend cut to 107 cents, down 27.7% from last year.
Woolworths Holdings, a prominent retailer in South Africa, reported a significant 24.8% decrease in profits for the first half of the financial year. This decline is attributed to weaker-than-expected revenue growth in the company’s clothing sectors, both domestically and in the Australian and New Zealand markets. Woolworths, which also operates food stores, faces challenges in maintaining sales momentum in a competitive retail environment.
The retailer revealed that its headline earnings per share dropped to 152.8 South African cents for the 26 weeks concluding on December 29, as compared to 203.3 cents during the same period the previous year, which ended on December 24, 2023. In light of these results, Woolworths declared an interim dividend of 107 cents per share, marking a 27.7% reduction from last year’s dividend.
In summary, Woolworths Holdings has experienced a substantial dip in profit due to sluggish growth within its clothing division, both in South Africa and overseas. The expressed reduction in headline earnings and the interim dividend illustrates the company’s struggle to navigate current market conditions, emphasizing the need for strategic adjustments to bolster financial performance.
Original Source: www.tradingview.com
