Woolworths sales climb but profits set to fall sharply

Woolworths Holdings Limited has alerted shareholders to an expected decline in earnings for the 26 weeks ended 28 December 2025, primarily driven by a significant base effect from the prior year. While the retail group managed to deliver turnover and concession sales growth well above inflation, total earnings per share (EPS) is expected to drop by as much as 35%.

The group attributed this sharp decline in EPS to the inclusion of the profit from the sale of its Bourke Street property in the prior year’s figures. Additionally, the current period was impacted by unrealised foreign exchange losses, in contrast to a gain in the previous year. Consequently, EPS is forecasted to fall between 159.5 and 171.8 cents, compared to the 245.4 cents reported previously.

Woolworth’s share price

Resilient sales performance amid macroeconomic constraints

Despite the earnings pressure, Woolworths reported a robust operational performance, with group turnover rising 5.4% (6.1% on a constant currency basis). This growth was achieved notwithstanding constrained consumer spending in both South Africa and Australia.

• Woolworths Food: The segment continued its market-leading momentum, growing turnover by 7%. The Woolies Dash on-demand service was a standout performer, surging 23% and now accounting for 7.2% of total South African food sales.
• Fashion, Beauty and Home (FBH): Turnover increased by 6.2%, supported by improved product availability and strong festive season demand. However, gross profit margins were impacted by price investments in Kidswear and the clearance of excess inventory.
• Country Road Group (CRG): Trading in Australia remained challenging and highly promotional. While the group saw a 2.3% increase in sales, performance softened in December after a strong Black Friday.

Read: Woolies blinks, hikes on-demand delivery fee by 29%

The group is currently navigating a heavy investment cycle, including the expansion of its Midrand distribution centre, which has increased depreciation costs and temporarily impacted gross profit margins.

In a move to return value to investors, Woolworths commenced a share buyback programme in September 2025. During the period, the company repurchased 6.9 million shares at a weighted average price of R51.23. The group’s full interim results are expected to be released on 4 March 2026.

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