Woolworths reports 16.8% drop in FY profit as shoppers spend less

South African upmarket fashion and food retailer Woolworths reported a decline in full-year headline earnings on Wednesday, 4 September 2024, as higher living costs continue to weigh on discretionary spend.

Reuters/Siphiwe

Woolworths reported headline earnings per share (HEPS) for continuing operations of 352.3 cents, down 16.8% on a comparable 52 weeks ended 25 June.

Including Australian department store David Jones' contribution in the prior year before being sold and on a 53-week period to June 30, HEPS fell by 29.2% to 364.2 cents.

The retailer also booked a R609m non-cash impairment of goodwill of its Australian men's fashion brand Politix. However, it said that this only impacted the EPS line and not HEPS.

Group turnover and concession sales for continuing operations rose by 4.3% to R76.4bn, with turnover at its South African fashion, beauty and home business inching down by 0.4% while food business sales grew 9%, further buoyed by the inclusion of the Absolute Pets acquisitions.

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On a non-comparable basis and from total operations, group turnover and sales fell by 16.4%.

Woolworths, which also operates in Australia and New Zealand via its Country Road fashion business, declared a final divided of 117.5 cents per share, down 23.9%.