Woolworths Holdings Ltd. reported a profit decline as its Australian apparel business experienced a sharp slowdown and it increased investment in its South African food division. Diluted headline earnings per share for the year ending June 26, 2026, rose 8.9% to 4.53 rand, surpassing analyst estimates of 4.45 rand. Sales increased by 16% to 72.1 billion rand ($5 billion), with food offerings outperforming clothing and general merchandise.
The company's CEO, Roy Bagattini, highlighted that the Australian market is highly promotional, with many items being sold at a discount, leading to businesses holding significant inventory, particularly in discretionary categories. Despite these challenges, Woolworths South Africa saw solid turnover and concession sales growth of 5.4%, though momentum moderated to 4.1% in the second half due to various factors including a strong comparative base, softer consumer demand, and trade disruptions. The Food business in South Africa continued its strong performance with 5.7% turnover and concession sales growth, and 3.7% on a comparable-store basis.
In Australia, Woolworths Group (a separate entity but often confused with Woolworths Holdings) reported an underlying net profit of A$1.60 billion ($1.15 billion) for the year ended June 28, 2026, exceeding analyst expectations of A$1.55 billion. This was an increase from A$1.39 billion a year earlier. Australian Food sales for Woolworths Group rose 4.6% to A$53.85 billion. The company also raised its total dividend by 27% to 3.13 rand per share for Woolworths Holdings, while Woolworths Group lifted its final dividend to 52 Australian cents a share from 45 cents a year earlier.
