Woolworths reports mixed financial results amid pressure on profit margins

WOOLWORTHS

- EDWARD WEST

WOOLWORTHS Holdings reported adjusted diluted headline earnings per share growth of 0.7% to 170.3 cents for the 26 weeks to February 28, 2026, in very tough trading environments in South Africa, and Australia.

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Holdings' gross profit margins are under pressure in the weak trading environment, despite progress in various strategic initiatives.Its financial results for the six months to February 28 showed the food business continuing to show above-market growth, and the apparel business and Country Road Group (CRG) in Australia reporting improved performances.

The share price gained 1,7% on the JSE Wednesday morning to R52,16, a price little changed from R53,32 a year before.

Discretionary spending remains weak in Southern Africa despite easing inflation and lower interest rates. In Australia, discounting in a high-cost inflationary environment is exerting pressure on retail footfall and spend.

The group, however, reported above-inflation turnover and concession sales growth of 5,4%, and 6,1% on a constant currency basis.

Woolworths South Africa reported turnover growth of 6,8% following positive sales and profit growth in all divisions.