Woolworths Trading Update - Strong Food Sales

28-NOV-19

Food and clothing retailer Woolworths is still a Vestact recommended stock in local portfolios. It has a market capitalisation of R57 billion these days, and is still in the JSE Alsi 40 index. The share price is at R54, compared to its all-time high of R103 in November 2015. In other words, we are still hanging in there, after four years of negative returns! Having said that, it's off its recent lows, of R45 a share.


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Woolworths FY Numbers - Things Improving

02-SEP-19

Last week Woolworths reported results that were disappointing but still better than the market was expecting. The result was the share price shooting up. Here are the numbers, Turnover is up 3.9%, HEPS are down 4.6%, and the dividend has been cut by 20%. The drop in the dividend is because management has decided not to pay a dividend out of their Australian business. It has been tough out there.


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Woolies VS Mr Price

03-JUN-19

On Friday Mr Price released full-year results. Here are the highlights.


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Woolies Six Month Numbers

25-FEB-19

Woolies released their half year numbers Thursday. The retailer reported a 2.9% drop in headline earnings on the back of bad performance by the David Jones brand in Australia which has proven to be a disaster of an acquisition to say the least.


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Woolies Tough Six Month Update

17-JAN-19

This morning Woolies released their 26 week (six month) sales update for the period ending 23 December. As expected, the numbers were not great. High-end food can be resistant during a tough economic period but even high earners shop down when it comes to clothing.


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Shopping Paradise in Sydney

04-OCT-18

Ian Moir and his team at Woolworths have been very good at creating a quality retail experience. It has been their niche and one of the reasons we have liked the stock. Unfortunately, a few things have not gone their way, but behind the scenes they continue to work very hard.


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Woolworths FY numbers - Still in turnaround mode

24-AUG-18

Vestact customers have been invested in Woolworths in their local portfolios since the middle of 2011. At the time, we felt that the clothing and food retailer was perfectly positioned to benefit from a growing middle class in South Africa, who were aspiring to shop at its upmarket stores. At the time, it traded at about R30 a share.


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Woolworths 6M - A company in transition

23-FEB-18

Yesterday Woolworths released their 6-month trading statement. Off the bat, you can see the company is in a transition phase. Locally they no longer have the luxury of taking market share from Edgars and Stuttafords, coupled with three years of poor economic growth. In Australia, the David Jones turnaround is still in full swing and still has another 18-months to go before tangible results will be seen.


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Woolworths 20 week update - times are tough

21-NOV-17

Last week Woolies released their 20-week trading statement, which as expected showed that they are under pressure. Their most important division from a profit margin perspective is what used to be called 'clothing and General Merchandise' and now is called 'Woolworths Fashion, Beauty and Home'. The division declined on a like for basis by 2.4% for the period.


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Woolworths FY - profits down

28-AUG-17

On Thursday morning Woolies released their 52 week or full year numbers for the period ending 25 June 2017. The stock has lost around a quarter of its value over the last 12 months, so the market knew the results were not going to show the strong growth that we had become accustomed to with Woolies. Turn over for the period was up 3%. Considering that inflation is higher than that, sales volume went backwards. HEPS were down 7.6% and then some good news, management maintained the dividend at R3.13 per share. See below how and where the company makes their money.


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Woolworths - 6 month numbers, no growth

17-FEB-17

Woolworths reported 26 week numbers to end 25 December 2016 on Thursday, Ian Moir the CEO put on a brave face. There is no Boxing Day for Woolies in here, before you say, what is that about, the boxing day sale for David Jones in Australia is the single biggest shopping day for the business. Must be a "thing", like Black Friday. Country Road after a few rough years is starting to show "green shoots", the company has a new CEO, no prizes for guessing that it is a Scotsman, Scott Fyfe. What is interesting is that the Scott has a lot of experience in Marks & Spencer.


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Woolworths 6 month sales, disappoints

13-JAN-17

Woolworths released a trading update yesterday. The stock has been under exceptional pressure. Over a year it is down nearly 30 percent. Over five years the stock is up 65 percent. There is no doubt the stock price "got ahead" in the face of what was a deteriorating outlook. Harry Hindsight knows all of this, Harry can tell you almost anything that you want to know. That counts for nothing, if you own the stock, if you followed your rights a couple of years ago, it means very little.


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Woolworths buys Politix

06-OCT-16

A relatively small announcement yesterday from one of our core holdings, Woolworths. Now remember that if you have been a shareholder for more than a few seconds, you would have been involved in the rights issue in which the company issued more shares in order to part fund the purchase of department stores in Australia, they are becoming a bigger clothing business. Fashion, at the top end of what is normal. This is not a 500 Dollar pair of leather shoes kind of market, this is the market where the shopper is undoubtably rich, not at the level of extreme luxury though. And the purchase yesterday confirms and rubber stamps that line of thinking (WTF, you can't stamp a line?).


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Woolworths FY numbers - good topline growth

26-AUG-16

Yesterday we received another set of solid full year results from our favoured retail stock, Woolworths. Lets delve into the numbers straight away and then we can discuss the different segments.


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Woolworth's 6 month numbers

12-FEB-16

Woolworths released six month results yesterday morning. We had already been sort of primed during the course of last month, the 26 week trading statement was released on the 14th of January. Group sales increased 17.1 percent, if you exclude David Jones (acquired on the 1 August 2014), sales grew by 12.3 percent. Basic and headline earnings grew 52.8 and 44.9 percent respectively. Headline Earnings Per Share grew by just 3.6 percent, remember that there are far more shares in issue now, due to the rights issue. Clothing and General Merchandise sales grew 12.5 percent, a pretty pleasing result. The Food business grew sales by 12.1 percent, with price movement (inflation) of 5.7 percent. It all looked OK, Ian Moir suggested in an interview that they continued to take market share across their respective businesses.


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