ACCC Flags Woolworths Takeover Of PFD Foods
The ACCC raised competition concerns with Woolworths’ $302 million proposed acquisition of 65% of PFD Food Services.
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Word of the Year – 2021?
Dion Hershan, Head of Australian Equities at Yarra Capital Management, looks at the opportunities that are emerging from a bleak 2020.
Read MoreDigital Sales Double As Woolies Posts Solid Q1
Woolworths said a switch to eating at home and online shopping powered a 12.3% rise in first-quarter sales compared to the prior corresponding period, a better outcome than the 10.7% rise reported last week by rival Coles.
Read MoreWOW – Citi rates the stock as Upgrade to Buy from Neutral
Citi upgrades to Buy from Neutral, raising estimates for earnings per share by 5% for FY21 and 3.5% for FY22. This reflects a rational grocery market and earnings momentum as well as appealing relative valuations.
Read MoreWOW – UBS rates the stock as Buy
UBS believes the market is not fully appreciating near-term earnings upside and long-term earnings optionality at Woolworths. This is based on the broker’s calculation that the current shares price is trading at an unwarranted discount.
Read MoreMoody’s: Record Supermarket Sales To Steady
Credit rating group, Moody’s sees Australia’s major supermarket chains – Woolies and Coles having a solid first half of the 2012-21 financial year, thanks to the continuing threat from COVID-19.
Read MoreWoolworths Shuffles Leadership Team
Woolworths has revealed a tantalising restructure of its upper management and in doing so set up a possible contest for the person to replace CEO Brad Banducci.
Read MoreWOW – UBS rates the stock as Buy
UBS notes Woolworths’ FY20 result was in-line driven by strong cash-flow.
Read MoreSupermarket Sales Not Enough To Save Woolies From Virus Impact
Woolworths’ diverse areas of business – hotels, department stores, supermarkets, wine, and liquor and a growing online presence was not enough to protect the company in the face of the ravages of COVID-19 and the lockdowns across the country.
Read MoreWOW – Credit Suisse rates the stock as Neutral
Credit Suisse views Woolworths as a solid hold entering FY20 and prefers it over the Coles Group ((COL)) due to its cost and operating income guidance certainty for FY20.
Read MoreWoolies Sales Surge But Staff Underpayments Blow Out
Another major pre-June 30 data dump from a major Australian company with Woolworths reporting big write-downs of more than $600 million, solid sales growth in recent weeks, preliminary earnings, more bad news on its employee underpayment scandal, job losses and three-quarters of a billion dollars to be spent on two huge distribution centres.
Read MoreOnline Ordering Shaping Up For Woolworths
Trading in April was too volatile to allow Woolworths to provide any guidance for sales in the June quarter but one trend is clear for brokers – online ordering is on the rise.
Read MoreSales Boom But Higher Costs Weigh On Woolies Outlook
Woolworths shares eased a little yesterday on investor concerns about higher costs from the supermarket giant’s battle to withstand the impact of the COVID-19 pandemic and lockdowns.
Read MoreMore Retail Pain As Myer Leads Slew Of Shutdowns
More retailers have closed their doors to limit the impact of the COVID-19 virus. Myer is standing down 10,000 staff straight away, Kathmandu is closing 170 outlets while South African controlled – David Jones is shutting 280 of its fashion brand stores including Country Road, Witchery, Mimco, and Politix.
Read MoreWOW – Morgans rates the stock as Hold
Woolworths has declared it cannot accurately forecast the impact of the virus on its full-year result. A trading update revealed strong recent sales growth on consumer hoarding, nonetheless leading to strain on supply chains to keep up with demand. Management noted, however, mayhem seemed to be easing last weekend.
Read MoreVirus Damage: Michael Hill Closes, Woolies Postpones Drinks Demerger, Retail Food Drops Guidance
Jewelry chain, Michael Hill has become the first major Australian retailer to close its doors in light of the coronavirus pandemic, meaning the jobs of thousands of workers are at risk. Meanwhile, Woolworths has postponed its drinks demerger, Retail Food Group has dropped its guidance as has Shaver Shop.
Read MoreEarly Data Shows Panic Buying Turning Around Retail Sales
Investors have paid no heed to partial figures from the ABS yesterday showing a 0.4% rise in seasonally adjusted retail sales in February. The rise came from the supermarket sector as other parts of retail, particularly associated with tourism or hospitality, are likely to plummet.
Read MorePanic Buying Extends To Supermarket Shares
Shares in Coles, Woolies, and Metcash surged yesterday as investors took heed of the impact of the panic buying will have on sales and earnings for the March quarter at least.
Read MoreAngry Analysts Slam Woolies As Staff Underpayments Mount
Now the underpayment scandal hitting major retailers is getting costly with the total bill, so far approaching $600 million.
Read MoreWoolies Unveils Leadership Team For Drinks Spinoff
The spin-off of Woolworths Endeavour Drinks business continues to take shape with the retailer revealing the new CEO and the new Chief Financial Officer yesterday.
Read MoreKaufland Exit Sparks Rally In Coles, Woolies Shares
No wonder shares in Coles and Woolworths soared to record highs late yesterday – a major potential rival from Germany has quit before it got around to opening a store in this country.
Read MoreWOW – Macquarie rates the stock as Neutral
Shareholders have voted in favour of the Endeavour Drinks restructure. This will allow for a reduction in ethical concerns, with the drinks business being separated, Macquarie assesses.
Read MoreWOW – Credit Suisse rates the stock as Underperform
Credit Suisse assesses a de-merger of Endeavour Drinks would enable a reinvestment strategy independent of Woolworths. Hotels & liquor retail generate lower returns on capital than the supermarket business.
Read MoreWoolies CEO Takes Pay Cut Over Staff Underpayments
Shares in major retailer, Woolworths hit and closed at an all-time high of $39.68 yesterday after CEO Brad Banducci and chairman Gordon Cairns announced they would have their pay packets docked for the 2019-20 financial year in response to the company’s $300 million underpayments of many of its managers.
Read MoreWoolies 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.
Read MoreWOW – 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%.
Read MoreWoolies 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.
Read MoreAnalysts 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.
Read MoreWOW – 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.
Read MoreWoolies 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.
Read MoreWoolies 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.
Read MoreTalking Income – Banks, Telstra, Woolworths & New Opportunities
Scott Kelly, Portfolio Manager for the DNR Capital Australian Equities Income SMA, gives Informed Investor his thoughts about which are the best income stocks on the ASX at the moment.
Read MoreWOW – 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.
Read MoreWOW – 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%.
Read MoreWoolies Trumps Coles Toy Promo As Q3 Sales Lift 4.2%
Australia’s biggest supermarket chain, Woolworths, outdid Coles in the March quarter, yesterday reporting a 4.2% rise in third-quarter sales, or 5.1% adjusting for the later timing of Easter in late April instead of at the end of March and early April in 2018.
Read MoreWOW – 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.
Read MoreWOW – Macquarie rates the stock as Underperform
Woolworths has announced the closure of 30 Big W stores and two distribution centres after the completion of its petrol sale. The company will also undertake a $1.7bn off-market share buyback.
Read MoreWoolies Confirms Buyback As Big W Turnaround Hits Dead End
A bit of sweet to smooth out the sour at Woolworths with the turnaround at Big W stalling and an off-market buyback which will result in a significant release of franking credits.
Read MoreWoolies Eyes Capital Return Amid “Challenging” Conditions
Shareholders in Woolworths have been told to expect possible capital management initiatives later this year after the giant retailer completes the sale of its petrol station business to a UK company.
Read MoreSupermarket Shares On The Slide
Tougher times for our small listed supermarket sector? Metcash shares took a hit for a second day while the relisted Coles is feeling the pinch as well.
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