Woolworths has reported strong growth in online sales in both its food and fashion, beauty & home categories, though headline earnings have come under pressure.
Full-year headline earnings in the 52 weeks to 29 June 2025, published on Wednesday, fell 23.9% due to a weaker-than-expected performance at its Country Road Group subsidiary in Australia.
This was offset by a better performance in its core South African operations, including through its Woolies Dash on-demand grocery delivery platform, despite a “subdued” consumer environment a “constrained macro backdrop”.
“Woolworths South Africa delivered strong turnover and concession sales growth of 9.4% for the period, and 9.8% for the second half, supporting adjusted earnings before interest, tax, depreciation and amortisation growth of 6.8% for the full year, and 10.9% growth in the second half,” it said in notes accompanying the financial results.
Woolies Dash delivered “strong sales growth” of 41.6%, with overall online sales increasing by 32.9% and contributing 6.6% to total food segment sales, it said.
In the fashion, beauty & home (FBH) segment, online sales growth also made up 6% of sales, growing by 22.8% compared to the same period last year. FBH turnover and concession sales increased by 4.7% and 5.1% on a comparable-store basis, respectively. Second-half sales growth was 7% through improved product availability.
Rocky Country Road
Woolworths said Country Road Group (CRG) performed poorly amid a major restructuring following its separation from David Jones. The restructuring was aimed at reconfiguring CRG’s operating model and resetting its “structural economics” as a standalone business.
“This transformation was undertaken in an accelerated timeframe and within a particularly unconducive macro backdrop, whereby sustained pressure from high interest rates and living costs continued to impact consumer footfall and spend,” it said.
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“Within this context, and the resultant impact of short-term business disruption, sales declined by 5.4% for the period and by 6.8% on a comparable-store basis.” — © 2025 NewsCentral Media
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