Wesfarmers (ASX:WES) - CEO, Rob Scott
CEO, Rob Scott
Source: Wesfarmers
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Over H1 FY22, Wesfarmers (WES) saw significant COVID-related disruptions, particularly impacting the performance of Kmart, Officeworks and Target
  • Across Kmart and Target stores, 25 per cent of the trading days were lost due to government-mandated store closures
  • Combined, Kmart and Target sales declined 10.3 per cent in the half and dropped 5.2 per cent on a two-year basis
  • Wesfarmers expects combined earnings before tax (EBT) for Kmart and Target to be between $215 million and $223 million for the half
  • Shares in Wesfarmers are up 2.46 per cent on the market and are trading at $55.33

Over H1 FY22, Wesfarmers (WES) saw significant COVID-related disruptions, particularly impacting the performance of Kmart, Officeworks and Target.

Wesfarmers expects a net profit after tax (NPAT) of between $1.18 billion and $1.24 billion for the six months ending December 31, which is in line with current expectations.

WES said pleasing results came from Bunnings, Wesfarmers Chemicals and Energy & Fertilisers, while results from Kmart, Officeworks and Target were impacted by COVID-related disruptions and costs.

Kmart and Target

Across Kmart and Target stores, 25 per cent of the trading days were lost due to government-mandated store closures.

Trading conditions improved as restrictions eased during Q2 but foot traffic was impacted by rising community transmission of COVID-19 in some states, particularly during the Christmas period.

Wesfarmers said global supply chain disruptions were well managed, however, high levels of COVID-related absentees across NSW and Victorian distribution centres impacted the ability to deliver stock in line with customer demand.

Combined, Kmart and Target sales declined 10.3 per cent in the half and dropped 5.2 per cent on a two-year basis.

As well as the COVID-19 pandemic, this decline in sales was due to the permanent closure of 14 Target stores and 48 Target Country stores.

Wesfarmers expects combined earnings before tax (EBT) for Kmart and Target to be between $215 million and $223 million for the half.

Catch

Wesfarmers expects an EBT loss for Catch of between $43 million to $45 million for the half, reflecting investment in team, technology, marketing and capabilities to support long-term growth.

Further details regarding Wesfarmers’ results will be announced on February 17.

Shares in Wesfarmers were up 2.46 per cent on the market and were trading at $55.33 at 1:32 pm AEDT.

WES by the numbers
More From The Market Herald
Cavalier Resources (ASX:CVR) - Executive Technical Director, Daniel Tuffin

" Cavalier Resources (ASX:CVR) begins PFS at Crawford

Cavalier Resources (ASX:CVR) has begun a pre-feasibility study (PFS) at the Crawford Gold Project within the…
Ten Sixty Four (ASX:X64) - Outgoing Managing Director, Paul Ryan Welker

" Ten Sixty Four (ASX:X64) terminates services agreement of former MD, Paul Ryan Welker

Ten Sixty Four (ASX:X64) has terminated the executive services agreement of former Managing Director Paul Ryan…

" M3 Mining (ASX:M3M) identifies drill targets at Edjudina

M3 Mining (ASX:M3M) has identified prospective gold-in-soil anomalies at the Edjudina gold project 150 kilometres northeast…

" Good Drinks Australia (ASX:GDA) commences the sale of Molson Coors and Magners

Good Drinks Australia (ASX:GDA) begins to sell the Miller Chill, Miller Genuine Draught, Coors, Molson Canadian…