Woolworths SA to reassess David Jones investment

EPS expected to decline 20%.

Woolworths Holdings has confirmed a potential re-assessment of the carrying value of the David Jones’ assets after recording a 3.3% drop in sales for the second half of 2017.

Earnings per share (EPS) for the 26-week period ended 24 December 2017 is expected to be more than 20% (69 cents) lower than EPS for the 26-week period ended 25 December 2016 (2016 EPS: 345.1 cents) due to the inclusion in the prior period of the profit on disposal of the David Jones’ Market Street property in Sydney, as well as the impact of the re-assessment of David Jones.

A further trading statement will be issued closer to the release of the interim results, providing further and more specific guidance on EPS.

In November, David Jones reported a sales decline of 5.3% and 5.2% in comparable stores due to disruption caused by the refurbishments of the Bondi Junction Food Hall and the Elizabeth Street store, as well as from the implementation of the new inventory management system also impacted trade.

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