Woolworths turnover increases 3.8% in H1 FY20

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

Also, there was a shift in trading weeks in 2020 compared to prior year with Christmas week falling into H1 in current period and H2 in prior period. 

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

In South Africa, the constrained economic environment, exacerbated by the disruption to trade caused by power outages, unseasonal weather in parts of the country and an underperformance in clothing led to a slower second quarter, company reported. 

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

In Woolworths fashion, beauty and home, sales and comparable store sales both grew 2.2 per cent. Price movement in fashion categories was 4.0 per cent and overall net space growth across FBH was 1.2 per cent. Group's Black Friday performance was reportedly disappointing due to under-participation. Womenswear underperformed as a result of some product failure, a lack of newness in summer and higher price points, which also impacted sales and volumes. Gross profit margin decreased to 46.6 per cent reportedly due to stock write-offs as South African brands exit the Australian market.

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

In Woolworths food, turnover and concession segment, sales increased 8.1 per cent, with comparable store sales 5.4 per cent higher and price movement of 5.1 per cent. The business has reportedly maintained positive volume growth for the period and continues to grow market share. Net space growth was 4.0 per cent. Gross profit margin of 24.6 per cent was in line with the prior period despite further price investment, company reported.

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

The Woolworths financial services book reflected positive year-on-year growth of 8.3 per cent as at the end of December 2019. 

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

For David Jones, the turnover and concession sales for the period increased by 4.9 per cent. The bushfires impacted footfall and sales at the end of the half, although sales were up 1.3 per cent for the second quarter and group reportedly gained market share in a tough market. The disruption from the Elizabeth Street store refurbishment had a significant impact, but this was reduced in the last two weeks of December subsequent to the opening of the ground floor, company stated. Comparable store sales (which include online) were 0.4 per cent lower after adjusting for the trading week shift. Online sales grew by 61.8 per cent and now comprise 10.4 per cent of total sales.

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

Gross profit margin for David Jones was 2.9 per cent lower than the prior period reportedly due to the inclusion of boxing day clearance in the first half, a higher proportion of promotional sales, disruption from refurbishments and reversal of certain inventory related provisions in the first half of last year.

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

Country Road group sales, which were also reportedly impacted by the bushfires, declined by 2.5 per cent. However, sales increased by 3.3 per cent excluding the impact of the Myer exit. Online sales in Australasia grew by 6.2 per cent and now represents 21.4 per cent of total Australasia sales. Net space in the Country Road group reduced by 8.1 per cent, which includes the space exited in Myer. Gross profit margin declined to 62.3 per cent reportedly due to lower full-priced sales.

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

Woolworths in their outlook reported that in South Africa, consumers remain under pressure from a weak economy amidst continued power outages. FBH will focus on improving performance through better pricing and ranges, particularly in womenswear. Food is expected to continue to trade ahead of the market. In Australia, consumer spending is likely to be muted in the short-term due to stagnant wage growth and the impact of the bushfires. The heightened levels of competition and promotional activity is expected to continue. David Jones is expected to benefit from the completion of the Elizabeth Street store refurbishment, with trade normalising from the fourth quarter and the Market Street rent ceasing from FY21. Online is reportedly an increasingly important channel for the group and they continue to invest in this growth driver. 

 

Woolworths Holdings Limited, a South Africa-based multinational retail company, reported group turnover and concession sales for the 26 weeks period (H1 FY20) that ended on December 29, 2019 increased 3.8 per cent to R40.9 billion. Group reported that there were tough trading conditions in both the South African and the Australian markets.#

The group also reported that the Coronavirus is significantly impacting tourism, footfall and sales in Australia. The Group is currently actively considering ways to mitigate the risks associated with the Coronavirus.