Half-year profit at South African retailer Woolworths Holdings could fall by as much as 17.5 percent, it said on Monday, sending its shares down more than 9 percent.
<img loading="lazy" decoding="async" class="aligncenter wp-image-40270 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/woolworths-safinanceandloans.co_.za_.jpg" alt="South Africa's Woolworths to buy Australian men's fashion retailer Politix" width="1000" height="668" />
A combination of a recession and political turmoil have eroded consumer spending power in South Africa and Woolworths is facing tougher competition in Australia from the likes of H&amp;M, and new entrant Amazon.
Woolworths, which sells groceries, food and homeware, said headline earnings per share &#8211; the main gauge of profit in South Africa &#8211; was likely to fall between 12.5 percent and 17.5 percent or 200.1 cents and 212.3 cents in the six months to December 2017.
Shares in Woolworths, similar in products and style to Britain’s Marks and Spencer, fell as much as 9.2 percent after the announcement before paring losses. At 0852 GMT it was down 5.5 percent at 59.85 rand ($4.85).
The retailer said group sales for the first half of the 2018 financial year increased by 2.5 percent, slower than a 6.7 percent rise in the first half of the 2017 financial year.
Woolworths said in August, it plans to spend 2.1 billion rand in South Africa in 2018 and $250 million in Australia in its David Jones and Country Road clothing brands.
($1 = 12.3329 rand)
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Reporting by Nqobile Dludla, editing by Louise Heavens
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South Africa’s Woolworths sees up to 17.5% fall in profit

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Woolworths reported that full year group sales increased by 3.0 per cent to R74 billion.

Woolworths reports increased sales

Annual profit at South African upmarket retailer Woolworths Holdings could fall by as much as 10 percent due to increasingly difficult trading conditions at home and in Australia, it said on Thursday
Woolworths, which sells clothing, groceries and homeware, said headline earnings per share &#8211; the main profit gauge in South Africa that strips out certain one-off items &#8211; was likely to fall by between 5 and 10 percent.
A Reuters poll of 12 analysts forecast a 6 percent drop.
&#8220;Growth in the second half was impacted by increasingly difficult trading conditions, in both South Africa and Australasia,&#8221; Woolworths said.
South African consumers have seen their spending power eroded by a volatile currency and a weakening economy, which slipped into a recession in the first quarter amid political turmoil.
Fierce competition in Australia, where global e-commerce juggernaut Amazon.com Inc recently set up shop, has also hit margins for the company&#8217;s David Jones and Country Road apparel chains.
Woolworths, similar in products and style to Britain&#8217;s Marks and Spencer, last posted an annual profit decline in 2009, when South Africa was in its previous recession.
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Reporting by TJ Strydom; Editing by Mark Potter
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Woolworths sees up to 10% fall in profit

The MySchool and Woolworths campaign to ‘Raise R100 million for Education’ ﻿has managed to raise R104.9 million, exceeding the original target of R100 million set in April 2015.
Woolworths says this milestone could only be achieved thanks to the support of customers and active MySchool cardholders who participated in the campaign between April 2015 and December 2016. The campaign is part of Woolworths’ and MySchool’s ongoing commitment to improving the quality of education in South African schools.
The ‘Raise R100 million for Education’ campaign was launched in 2015 when Woolworths pledged to accelerate its efforts to raise R100 million for education in South Africa. This was done through MySchool MyVillage MyPlanet, a leading fundraising platform which contributes more than R1 million per week to over 7 000 schools, charities, animal welfare and environmental organisations across South Africa.
Woolworths CEO, Zyda Rylands, described the achievement as a positive step in ongoing efforts to ensure that every child is given a chance to get good education.
“I am proud to say thank you to our customers and to South Africa as a whole for rising to this challenge – together we did it.  Every swipe of your MySchool card contributed to helping us meet the needs of schools, charities and communities across the country.” 
“While we are delighted to have reached this milestone, the challenge to improve education in South Africa is an ongoing task and we remain committed to playing our part. We would like to use this opportunity to encourage all our customers to get involved and affect real change by simply signing up for a free MySchool card, or by linking their Woolies card to the MySchool programme today”, said Rylands.
Pieter Twine, MySchool’s General Manager, said that over the years the fundraising platform has played a significant part in improving the quality of education in the schools that participate in the programme.
“We work in partnership with schools across South Africa with the aim of improving education at a foundational level. To date, MySchool has funded several thousand educational projects in South Africa – ranging from critical, basic needs in poverty-stricken communities, to more advanced needs such as computer centres, mobile libraries and sporting facilities. The success of the ‘Raise R100 million For Education’ campaign is further evidence of how small efforts by Woolies’ customers are making a big difference in the lives of school children who need it the most,” said Twine.
Since the beginning of the campaign, the funds raised have helped thousands of scholars through various educational initiatives and structured support, including:
<ul>
<li>Upgrades to classrooms and new toilet facilities at Thohoyandou Primary School in Pretoria;</li>
<li>The purchase of over 5 500 Tutudesks for rural schools in the Eastern Cape, so schoolchildren now have something to write and draw on;</li>
<li>The development of a sensory botanical garden at Athlone School For The Blind, Cape Town;</li>
<li>The extension of the Bricklaying Workshop at Westridge High School, a technical skills training college in Durban;</li>
<li>Vissershok Primary School, a rural farm school that services the Du Noon informal settlement, was able to replace their guttering and down pipes;</li>
<li>Hout Bay High School purchased back-to-school stationery packs for all their learners;</li>
<li>Laerskool Elarduspark started a feeding scheme with their MySchool funds for learners who come to school without food;</li>
<li>The Willows Nursery School used their MySchool funds to subsidise school fees for low income families;</li>
<li>Gene Louw Primary School funded occupational therapy for learners who cannot afford it; and,</li>
<li>Emisebeni Primary School repaired their kitchen which had burned down, so they able to provide school meals again.</li>
</ul>
To learn more about the impact of MySchool’s work, click here <a href="http://www.myschool.co.za">www.myschool.co.za﻿</a>

Woolies S.A raises R100-m for education

South Africa&#8217;s Woolworths Holdings plans to buy Australian men&#8217;s fashion brand Politix through its subsidiary, Country Road Group, the retailer said on Wednesday.
Woolworths, which sells upmarket food and clothing, said the acquisition will be funded using its own resources and is expected to immediately increase the company&#8217;s earnings per share.
No financial details were provided.
Woolworths has expanded in Australia, having bought a portfolio of brands that includes David Jones, Witchery, Trenery and Mimco.
The South African company bought department store chain David Jones in 2014 in a $2 billion deal that gave the Australian retailer the financial firepower to ramp up its online offerings and in-store label.
Politix has 75 stores, including 31 concessions, across Australia, and had full-year 2016 sales of A$56 million ($42.70 million).
 
($1 = 1.3115 Australian dollars)﻿

Woolworths

South Africa’s Woolworths sees up to 17.5% fall in profit

Woolworths reports increased sales

Woolworths sees up to 10% fall in profit

Woolies S.A raises R100-m for education

South Africa's Woolworths to buy Australian men's fashion retailer Politix

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Woolworths

South Africa’s Woolworths sees up to 17.5% fall in profit

Woolworths reports increased sales

Woolworths sees up to 10% fall in profit

Woolies S.A raises R100-m for education

South Africa's Woolworths to buy Australian men's fashion retailer Politix

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