Upmarket fashion and food retailer Woolworths says it expects to report a decline of up to 32% in full-year total headline earnings on weak sales as higher living costs continue to weigh on discretionary spend.
Woolworths said on Wednesday headline earnings per share (HEPS) for total operations are expected to fall by 27% to 32% in the 53 weeks ended June 30, from 514.7c in the year before.
Excluding Australian department store David Jones' contribution in theyear before being sold and on a comparable prior 52-week period, HEPS are seen falling by 14% to 19%.
The retailer will also book a non-cash impairment of goodwill on its Australian men's fashion brand Politix after reassessing the carrying value of the brand. This will only impact the EPS line and not HEPS.
Group turnover and concession sales for the total group decreased by 16.4%, with its South African fashion, beauty and home business delivering turnover growth of 1.4%, while the food business grew sales by 11.2%, further buoyed by the inclusion of the Absolute Pets acquisitions in the fourth quarter.
