Woolworths ups sales

Johannesburg - Woolworths Holdings [JSE:WHL] group sales for the first 26 weeks of the 2012 financial year increased 11.4% over the comparable period in 2011. Sales in comparable stores grew by 7.7%, the company said on Tuesday.

The company also advised that it expects both earnings per share (EPS) and headline earnings per share (Heps) for the 26-week period to December 25 2011 to be 30% to 35% higher than the corresponding reporting period a year ago.

Clothing sales in South Africa grew by 11.2% with a price movement of 7%. Sales in comparable stores grew by 5.9%, up from 4.9% at 20 weeks.

Food sales grew by 11.7% with price movement of 4.8%. Sales in comparable stores grew by 8.4%, up from 7.2% at 20 weeks.

General merchandise grew by 6.2% and 4.2% in comparable stores, up from 2.5% at 20 weeks.

Woolworths' retail space, including Africa, grew by 2.3% year-on-year (y/y), net of closures and excluding franchise conversions.

"Franchise store conversions are on track with 50 stores now converted. A further 8 will be converted during the balance of the year and 17 stores will remain franchised," it said.

Converted franchise stores are treated as non-comparable.

Sales in Australia contracted 2.8% in Australian dollar terms, with sales in comparable stores declining by 5.5%. Space in Australia grew by 0.7%.

Country Road's South African sales are included in the South African clothing segment.

The Woolworths Financial Services debtors' book reflected y/y growth of 6.7% at the end of December 2011. The impairment rate for the six months to December 2011 was 1.7% compared with 1.6% for the equivalent period last year.

Woolworths said included in both EPS and Heps is a R41m post-tax unrealised gain from the mark-to-market of foreign exchange contracts open at 25 December 2011.

The group's interim results are scheduled to be announced on or about February 16.