Woolworths Holdings reported a 24.8% decline in profit in its first-half due to soft clothing sales growth in South Africa, Australia, and New Zealand. Headline earnings per share fell to 152.8 cents, down from 203.3 cents in the prior period. The company declared a reduced interim dividend of 107 cents, reflecting a 27.7% decrease from last year.
Woolworths Holdings, a prominent South African retailer, reported a significant decline in profit for its first half, with a notable decrease of 24.8%. This downturn is attributed to weaker sales growth in its clothing divisions within South Africa and the markets of Australia and New Zealand. The company’s performance reflects challenges faced in achieving anticipated revenue levels despite operating across various sectors.
For the 26 weeks ending December 29, Woolworths noted that its headline earnings per share dropped to 152.8 South African cents, a fall from 203.3 cents during the previous corresponding period which concluded on December 24, 2023. Furthermore, the company has announced a reduction in its interim dividend, setting it at 107 cents per share, a decrease of 27.7% compared to the last year. This announcement reflects the company’s cautious approach in light of its recent financial performance.
In conclusion, Woolworths Holdings has faced a considerable setback in profitability due to soft growth in its clothing sales. The resulting decline in earnings per share and the subsequent reduction in dividend payments underscore the financial challenges currently confronting the retail sector in both domestic and international markets. Such developments necessitate a strategic reevaluation to enhance future performance.
Original Source: www.tradingview.com
