Woolworths Holdings reported a 24.8% profit decline in the first half of the year, attributed to weak clothing sales in South Africa, Australia, and New Zealand. Headline earnings per share decreased to 152.8 cents, while interim dividends were lowered by 27.7% to 107 cents per share.
Woolworths Holdings, a prominent upmarket retailer in South Africa, reported a significant decline in its profits for the first half of the fiscal year. The company’s profit dropped by 24.8%, primarily due to disappointing sales growth in its clothing divisions both locally and in Australia and New Zealand.
For the 26-week period ending December 29, Woolworths recorded a decrease in headline earnings per share, which fell to 152.8 South African cents from 203.3 cents in the previous corresponding period. This decline was alarming for investors seeking a robust financial performance.
Despite the profit slump, Woolworths announced an interim dividend of 107 cents per share; however, this represents a 27.7% decrease compared to the previous year’s dividend. This reduction in dividend distribution reflects the company’s need to conserve cash amidst declining profits and sales.
Woolworths Holdings has experienced a notable decline in profit and earnings, largely due to weaker sales in its clothing segment. The reported decrease in both earnings per share and dividends suggests challenges for the company moving forward. Stakeholders may need to closely monitor the company’s strategies in response to these market pressures.
Original Source: www.tradingview.com
