Woolworths Holdings reported a 24.8% profit decline due to weak clothing sales growth in South Africa and abroad. Its headline earnings per share fell to 152.8 South African cents, and the company has announced a 27.7% decrease in its interim dividend to 107 cents per share.
Woolworths Holdings, the premium South African retailer, reported a significant drop in profit for the first half of its fiscal year. The company experienced a 24.8% decline in its profit, primarily attributed to disappointing sales growth in its clothing segment in both South Africa and its markets in Australia and New Zealand.
During the 26-week period ending December 29, the retailer’s headline earnings per share decreased to 152.8 South African cents, down from 203.3 cents in the previous period. This decline highlights the challenges faced in maintaining robust sales in the competitive clothing market.
Furthermore, Woolworths announced an interim dividend of 107 cents per share. This figure represents a reduction of 27.7% from dividends issued during the same period last year, reflecting the company’s struggle to navigate the current retail environment effectively.
In summary, Woolworths Holdings has faced significant challenges in its clothing sales, resulting in a marked decline in profits for the first half of the year. The company’s earnings per share fell considerably, leading to a reduced dividend payout. These developments underline the competitive pressures in the retail market, particularly affecting the clothing sector.
Original Source: www.tradingview.com
