Woolworths South Africa has reported strong momentum in its Australian businesses, after Country Road and David Jones outperformed expectations in the second half of FY22.
Woolworths Group CEO Roy Bagattini said the result, which saw David Jones aEBIT up 86% and Country Road Group aEBIT up 19%, was in line with the broader portfolio.
“I am very pleased with the Group’s performance,” he said.
“We have delivered the healthiest balance sheet in almost a decade, double-digit profit growth supported by strong momentum in Australia and signs of the turnaround of fashion, beauty and home, and the returnof excess cash to our shareholders.
“I firmly believe that we have proven ourselves to be a resilient or ganisation that is focused on formulating clear strategies and executing against them.
“We are on track to rebuild our financial credentials, drive long-term value creation, and restore our business to its rightful place in the hearts and minds of all our stakeholders.”
Country Road Group sales grew by 3.1%, notwithstanding a further 8.1% reduction in trading space.
This result was driven primarily by a strong performance from the Country Road, Trenery and Politix brands,
following the successful launch of new ranges and the ongoing focus on brand and product positioning.
Online sales increased by 4.6% and contributed 31.6% to total sales for the year.
Adjusted operating profit in H2 grew by 18.6% to A$72.1m.
For the full year, adjusted operating profit was 22.3% lower at A$120.3 million, returning an operating profit margin of 11.1% compared to 14.7% in the prior year.
While David Jones FY22 turnover declined by 2.6% amid first half lockdowns, it grew 4.3% in the second half.
Online sales increased by 28.7% and contributed 22.8% to total sales over the full year.
Adjusted operating profit in H2 grew by 85.5% to A$52.5m.
For the full year, adjusted operating profit declined by 0.6% on the prior year, to A$83.7 million, returning an operating profit margin of 4.1%, compared to 4.0% in the prior year.