Wesfarmers results wrap: How the major retailers performed

By Claire Reilly

Results reporting season continues with Wesfarmers today releasing sales and profit figures for the first half of the 2013 financial year. Across the company’s total operations, revenues were up 3.2 per cent to $30.61 billion, earnings before interest and tax (EBIT) were up 5.5 per cent to $2.04 billion and net profits climbed 9.3 per cent to of $1.29 billion.

Click here to sign up for our FREE daily newsletter
Follow Current.com.au on Twitter

Here’s how Wesfarmers’ major operations performed over the six months ended 31 December 2012.

Target

Revenue: Up 0.5 per cent to $2.07 billion
Earnings: Down 20.4 per cent to $148 million
Stores: 7 new stores and 2 replacement stores opened.

“Higher costs associated with Target’s transformation plan weighed on its earnings during the half,” said managing director Richard Goyder. “While trading results in the half provided encouragement for the division’s strategy, Target remains in the early phases of its transformation.”

Kmart

Revenue: Up 2.8 per cent to $2.30 billion
Earnings: up 24.9 per cent to $246 million
Stores: 6 new stores opened

“Earnings growth of 24.9 per cent was achieved through continued improvements in sourcing, inventory management and strong performance in Kmart’s everyday and seasonal ranges. The continued focus on driving volume and improved operational execution also contributed to earnings growth achieved in the first half.”

Bunnings

Revenue: Up 5.8 per cent to $4.02 billion
EBIT: Up 6.8 per cent to $518 million
Stores: 15 new locations opened, 11 under construction

“Sales increased across all key product categories and trading regions,” the results commentary read. “The increased EBIT is the result of initiatives across service, merchandising and commercial areas, together with network development productivity improvements and disciplined operating cost management.”

Officeworks

Revenue: Up 0.3 per cent to $712 million
Earnings: Up 11.8 per cent to $38 million
Stores: 9 new locations opened

“Whilst headline sales across the Officeworks retail store network were in line with the previous corresponding period, transaction numbers grew strongly. Development of the Officeworks website to improve the online customer experience continued, with double digit transaction growth for the half-year. Challenging retail trading conditions coupled with competitive pressure on sales and margin are expected to continue throughout the remainder of the 2013 financial year.”

Leave a Reply

Your email address will not be published. Required fields are marked *

*