Target sees slight improvement.
Total sales in Kmart increased by 1% with comparable sales declining by 0.6% for the half year ended 31 December, 2018. Sales were impacted by the exit from the DVD category, weaker apparel sales and moderated growth in everyday products.
Total sales for Target increased by 0.2%, with comparable sales up 0.5%, an improvement on the prior corresponding period.
The moderation in sales growth in Kmart is expected to result in earnings before interest and tax (EBIT) for department stores between $385 million and $400 million for the half year.
Wesfarmers managing director, Rob Scott said the Group’s overall performance continued to reflect the strength of its diverse portfolio of businesses and interests.
“All of our businesses continue to deliver a compelling offer to their customers and Wesfarmers enters the new calendar year with a strong balance sheet and operating businesses well positioned for the future.”
Wesfarmers half year results will be announced on 21 February 2019.