Woolworths reports mixed financial results amid pressure on profit margins

WOOLWORTHS Holdings’ gross profit margins are under pressure in the weak trading environment, despite progress in various strategic initiatives.

- 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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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.