Woolworths business units retreat as headwinds compound
Multinational retailer Woolworths released its half-year financials, with most business units moving in the wrong direction.
Multinational retailer Woolworths released its half-year financials, with most business units moving in the wrong direction.
Woolworths food shines whilst its apparel and beauty units continue to underperform, a recurring theme since the acquisition of David Jones.
The group’s crown jewel, Woolworths Food, continues to flourish and eat up market share from competitors whilst DJ drags performance.
Woolworths Group sales for the 26 weeks ended 27 December 2020 increased by 5.3% compared to the prior period.
Woolworths said Australian division head John Dixon will leave and won’t be replaced after South Africa’s biggest clothing and food retailer was forced to write off $541 million from the country’s David Jones business earlier this year.
Woolworths will maintain its dividend payout for the 26 weeks ended 25 December, as it announced a 4.3% drop in headline earnings per share.
Woolworths’ subsidiary Country Road had entered into an agreement to acquire Politix, a market-leading retailer in Australian designer menswear.
Woolworths is on an ambitious journey of continuous change in the way it does business and has put sustainability at the core of its strategy, and is proud to announce its Good Business Journey goals for 2020.
Woolworths says first-half earnings climbed 47 percent as food sales grew and as revenue from its David Jones unit in Australia climbed.
Country Road did particularly well and at David Jones, Woolworths is stemming losses since it made that purchase