Tag: WOW

Buried in the third quarter sales figures for Woolworths was an explosive bit of information.

It was a mixed first half sales report from the country's dominant retailer, Woolworths Ltd.

Woolworths (WOW) said it will oppose the appeal by the New Zealand Commerce Commission (NZCC) against the NZ High Court's decision which allows Woolies to bid for New Zealand's largest discount retailer, The Warehouse Group.

The chances of Woolworths revealing some significant capital management moves to benefit shareholders have risen with the reports the retail giant has dropped its ambitions to get its hands on some of the retail assets of rival, Coles Group.

A cautious first quarter sales report from the country's biggest retailer, Woolworths, but one that makes clear the retail boom we've been experiencing since the start of the year is alive and well and high petrol prices are no longer a hindrance; while inflation seems to be easing for the retail giant.

Woolworths' shares yesterday recovered some of the losses incurred in the wake of the early release of the 2007 sales figures and earnings guidance on Tuesday.

Like it or not you'd have to wonder if Woolworths has shot itself in a small appendage over the past couple of days, despite the flood of gush from some broking analysts about the 2007 sales figures and profit guidance.

Far from sending a message to would be rivals, Wesfarmers and Coles Group, Woolworths seems to have disappointed the market in advancing the release of its 2007 financial year (and fourth quarter) sales and profit guidance by a week.

Woolworths isn't a defensive investment stock, good for the tough times, it is one of the market's premier growth stocks with low dividend yield and high price earning ratio.

Are there are signs the reported interest of Woolworths in the assets of its struggling rival, Coles, is just that, interest and nothing more?

Woolworths is heading for a record full year sales and earnings after reporting an 8.8 per cent rise in third-quarter sales following solid growth in its supermarkets and general merchandise businesses.

The enormity of the gulf between Woolworths and Coles was driven home yesterday when Woolies produced net earnings for the first half of 2007 that went within $100 million of matching the amount Coles expects to make in a full year.

Woolworths’ strong second quarter and first half sales gains were well anticipated by investors this week, the shares climbing from just under $23.10 at the start to a high yesterday of $23.94 after they were released.