Tag: WOW

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.

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.

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.

Woolworths shares rose sluggishly yesterday after the country’s biggest supermarket chain revealed a set of underwhelming sales figures for the first quarter.

Woolworths lifted 2016-17 dividend by way of higher ordinary payouts and a one off payment of 10 cents a share, but the payout to shareholders of $1.03 a share remains well short of the $1.39 a share paid in 2014-15, when the company’s Masters hardware adventure was starting to go bad and the previous board and management lost control of its supermarkets business.

Woolworths wasn’t in the Confession Club on Wednesday and if it had been, the very solid third quarter sales report was very much good news, rather than bad.

Woolies shareholders will share the solid lift in profit for the six months to December.

It wasn’t the Christmas present Woolworths or BP were expecting. Instead of a bauble, they got coal from the competition regulator, the ACCC which has decided to oppose the big petrol station sale and purchase between the two claiming the deal would lessen competition in the petrol market.

Amazon day and the 2016-17 annual meeting of Woolworths shared the same date yesterday and for a retailer claimed to be in the sights of the online giant, the share price was rock steady, edging a few cents higher to $26.20 on the day.

Woolworths has regained its sales momentum in its most important business – its Australian supermarkets and liquor business after seeing it disappear as the previous board and senior managers became distracted by the multi-billion dollar losses from the Masters hardware adventure.

It used to be soo easy for Woolies a few years ago. Customers would just roll up and spend at its supermarkets in Australia and NZ, buy booze at Dan Murphy’s, shop for homewares and clothing at Big W, and buy petrol at its petrol outlets/convenience stores, many of which were run with or supplied by Caltex.

As an investor you know what embarrassment is? It’s a big loss, or a missed opportunity. For shareholders its similar, but overlaying that is the performance of management and boards of the companies you invest in – strategy and execution are always the big tests for dud managements or good performers.

For the past three years Woolworths (WOW) biggest headache was the expansion into hardware through Masters, but as that was being resolved, its Big W department store chain developed a crack which turned into a flood of problems in the past 18 months, and will damage 2016-17 earnings.

Woolworths (WOW) shares hardly budged yesterday after a possible class action was announced against the retailing giant over alleged breaches of the Corporations Act following the shock 2015 profit downgrade.

Has the love affair with Woolworths (WOW) and investors been rekindled after the unfortunate dalliance with hardware? Yesterday’s market reaction to the December half year result suggests investors are prepared to overlook a few short term blemishes at the country’s biggest retailer.

A year ago it was the Masters hardware adventure and concerns about management performance that dominated the annual meeting of Woolworths (WOW). The running sore that was Big W was a minor item of angst for most shareholders.

By any measure the 0.2% fall in the Woolworths share price yesterday in the wake of the loss of the second CEO of its struggling Big W department store chain in a year, was a pretty muted reaction. The shares finished the day at $23.30.

Just when Woolworths (WOW) thought it had put the Masters hardware disaster behind it with those deals last Thursday to close and sell off its outlets and stock, along comes its partner, US hardware giant, Lowes with legal action that could see a key part collapse.

Not so wow! Investors sent Woolworths (WOW) shares sharply higher at one stage yesterday in a relief rally that was based on the immediate belief the retailer had put all the bad news behind it after getting rid of its costly hardware debacle.

Woolies woes are a Woolies problem – all homegrown and not caused by the rise of Aldi, Coles rebirth, or anyone else.

It’s called ‘Kitchen Sinking” or dumping it all on the old CEO and board (especially the departed chairman).

Woolworths (WOW) shares leapt more than 7% yesterday as the company unveiled a second round of house cleaning at a cost of more than $900 million, on top of the $3.2 billion plus of losses and impairments revealed in February.

Woolworths (WOW) shares took a pounding yesterday, falling to a 10-year low, after ratings group Standard & Poor’s cut the retailers credit rating in the wake of the weak March quarter sales performance and clouded outlook.

Woolworths’ sales revival remains elusive for the new look management team led by Brad Banducci. So much so that he has revealed that good old standby of the new CEOs – a company-wide strategic review.

Woolworths (WOW) shares were sold off yesterday in the markets big surge for a second day after Moody’s downgraded the retailer’s credit rating, warning the supermarket giant faces a series of continuing challenges.

Supermarket giant Woolworths (WOW) has sunk $972.7 million into the red in the first half after over $3 billion in impairments and losses on its rotten Masters hardware adventure.

Applause from investors yesterday for Woolworths (WOW) announcement plans to pull the plug on its Masters loss-making home improvement business after buying out US joint venture partner Lowe’s Companies Inc for an as-yet-undisclosed price.

Woolworths’ horror year has been capped by legal action launched by the competition regulator yesterday for alleged unconscionable conduct over its dealings with suppliers a year ago to urgently reduce a half year profit shortfall for the six months to December, 2014.

Shareholders in struggling retailer, Woolworths (WOW), who turned up for yesterday’s annual meeting in Sydney got the now familiar spin from chairman Gordon Cairns – he acknowledged the problem, admitted mistakes, promised to do better, outlined some priorities and then told the audience the company had to move on.

For some reason the market gossip about private equity interest in Woolworths (WOW) won’t go away – not for the entire company (which would be a very rich dish at close to $53 billion).

The pain and pressure grows on Woolworths (WOW), sending the shares to test 8-year lows for a second time this week after rating group Moody’s cut its credit outlook to negative, blaming the lack of leadership at Australia’s largest retailer.

Just as we were recognising Dick Smith’s (DSH) effort on Wednesday to replace Myer (MYR) as retailing’s black sheep, along came industry leader, Woolworths (WOW) yesterday morning with a high class entry of its own – a 2.5% slide in sales for the third quarter to $15.75 billion (the first quarter for the company’s 2105-15 financial year) thanks to a slide in supermarket shares and a slump in Big W – and as a result a big profit warning which sent the shares down 8%.

No support from investors in yesterday’s big sell off on the news that Woolworths (WOW) and its home improvement partner, Lowe’s Companies, have injected another $90 million into their struggling Masters hardware joint venture.

Woolworths shares fell more than 4% at one stage yesterday after Moody’s joined Standard and Poor’s in downgrading the supermarket giant’s credit rating after Friday’s board changes and weak 2014-15 profit result and sales performance.

Two differing reactions yesterday from ratings group Moody’s towards two major companies – one positive, one negative.

There’s a feeling the changes at Woolworths (WOW) are not over after yesterday’s shock retirement (resignation?) of CEO Grant O’Brien and the ‘departure’ of the director of retail sales, Penny Winn, who will remain with Woolies until November.

Woolworths (WOW) lost 5% in value yesterday as investors well and truly mauled the stock in reaction to a weak sales update, weak strategy update and a feeling the retailer is slipping further behind rival Coles/Wesfarmers and other chains such as Bunnings and Kmart.

We had contrasting profit reports today from two of the major retailers in the country – in differing sectors – Woolworths (WOW) and Harvey Norman (HVN).