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- 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.
