Woolworths Holdings reported a 24.8% profit decline in its first half due to weaker clothing sales in South Africa and Australia. Headline earnings per share fell to 152.8 cents, with an interim dividend decrease of 27.7% to 107 cents. These results reflect significant market challenges for the retailer.
Woolworths Holdings, a leading retailer in South Africa, revealed a significant decrease in profits, reporting a 24.8% decline in its first half, attributed to lower-than-anticipated revenue growth in its clothing divisions both domestically and within Australia and New Zealand. The results emerged as the company faced challenges in its key market segments, underscoring the impact of these factors on its overall financial performance.
For the 26 weeks concluding on December 29, the retailer’s headline earnings per share decreased to 152.8 South African cents, a notable reduction from the 203.3 cents recorded in the previous comparable period that ended on December 24, 2022. This downturn highlights the struggles Woolworths is facing in maintaining profitability amidst fluctuating sales figures.
Additionally, the company declared an interim dividend of 107 cents per share, representing a decline of 27.7% compared to the previous year, reflecting a prudent approach as it navigates these financial challenges. This decision is indicative of Woolworths’ effort to balance shareholder returns with current market conditions.
In summary, Woolworths Holdings has experienced a substantial profit decline due to weak clothing sales growth in its primary markets. This has resulted in a significant drop in earnings per share and a reduced interim dividend. As the company contends with these challenges, its next strategic moves will be critical for restoring profitability and enhancing shareholder value.
Original Source: www.tradingview.com
