Woolies Pushes Ahead On Drinks Demerger
Woolworths has started the complicated three-part merge and de-merge of its Endeavour Drinks business with the issuing of an explanatory booklet for the first stage to shareholders yesterday.
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News
Woolies Staff Underpayments Overshadow Strong Q1 Sales
Supermarket giant and one of Australia’s largest employers Woolworths has underpaid nearly 6,000 of its employees close to $300 million dollars due to non-compliance with the industry award over the past decade.
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Analysts Downgrade Coles Ahead Of Q1 Sales Report
Signs of investor worries about the first quarter trading performance of our two biggest retailers - Woolworths and Coles which are both due to update the market this week on how they went in the three months to the end of September.
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Woolies Rules The Supermarket Aisles But Big W, Drinks Disappoint
A cautious thumbs down from investors to Woolworths 2018-19 profit which turned out to be like so many other results this year - lacklustre and a little unconvincing.
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Woolies Plots Gaming & Liquor Spin-Off
Investors gave a strong thumbs up yesterday to Woolworths plan to lighten its involvement in the contentious liquor and gambling industries.
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Analyst Views
WOW – Morgan Stanley rates the stock as Underweight
First-quarter food sales growth of 6.6% was in line with expectations. Online sales growth accelerated to 43%. NZ food like-for-like sales growth was also strong, up 4.8%.
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WOW – Credit Suisse rates the stock as Underperform
Credit Suisse considers the stock expensive relative to valuation, which drives an Underperform rating. A lack of operating leverage in the FY19 result and cost headwinds appear to be incrementally negative, and the result was marginally below forecasts.
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WOW – Citi rates the stock as Downgrade to Sell from Neutral
German competitor Kaufland is looking to start a battle for its share of the Australian households' wallet and Citi thinks this will act as a catalyst for a resumption of an industry-wide private label price war.
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WOW – UBS rates the stock as Buy
The highlight of Woolworths' quarterly sales numbers was a 4.2% increase in food sales, Easter adjusted, versus Coles ((COL)) at 2.4%.
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WOW – Morgan Stanley rates the stock as Underweight
Morgan Stanley continues to believe the valuation is too rich, given the earnings growth outlook. The broker adjusts its numbers to allow for the buyback and the petrol divestment and lifts FY20 estimates for earnings per share by 5%. Target is raised to $26 from $23.
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