Woolworths Holdings reports 7.7% share price increase amid strong sales growth

 Woolworths Holdings’ share price shot up 7.7% Wednesday morning after it said sales have increased in all its business segments in the 19 weeks to November 9, the higher-end retailer said Wednesday.

The macro-economic environment is constrained across both South Africa and Australia, but the group managed to increase turnover and concession sales well above inflation at 6.2%, and by 6.8% on a constant currency basis, a trading statement to shareholders noted.

The share price traded at R57.02 on Wednesday morning, while a year ago it was trading at R67 per share.

A previously communicated share buyback programme started in September 2025, with 6.9 million shares repurchased to date, at an average share price of R51.22.

The directors said in the update that Woolworths South Africa had delivered “very creditable turnover and concession sales” growth of 7.4%, despite relatively subdued consumer confidence and spend.

Within this, the Food business continued to deliver strong turnover and concession sales growth of 7.7% and 6% on a comparable-store basis, with consistent month-on-month market share gains and positive underlying volume growth.

Price movement had steadily declined, averaging 4.6%, while trading space increased 4.8% on the prior period. The on-demand Woolies Dash offering grew by 24.2%, with ongoing investment in digital platforms. The online channel now contributes 7.3% to the group’s SA Food sales.

Fashion, Beauty and Home (FBH) turnover and concession sales increased by 6.2% and by 6.6% on a comparable-store basis. Trading had improved, with sales growing ahead of the market in each of the past six months, supported by increased product availability as a result of value chain initiatives.

Price movement averaged 3.3%, incorporating Fashion inflation at 2.2%, with positive underlying volume growth, supported by improved product resonance and, in turn, higher sell-through rates, the directors said.

The Beauty and Home businesses delivered strong growth of 9.6% and 13.8%, respectively. An ongoing initiative to optimise space and efficiency resulted in trading space decreasing by 1.8%, whilst online sales contributed 6% to SA FBH sales.

The Woolworths Financial Services book fell by 2% on a year-on-year basis to the end of October, but increased by 1.5% excluding the sale of part of the legal book, with a focus on quality growth through new accounts, as well as credit limit increases on existing accounts.

In Australia and New Zealand, trading conditions appeared to be improving, but the retail sector remained challenging and promotionally driven.

Country Road Group (CRG) sales increased 3.3% and by 3.9% on a comparable-store basis. With the exception of Mimco, all brands were trading ahead of last year, benefiting from a repositioning of the underperforming brands and restructuring of CRG's operating model.

Net trading space and online sales contribution had remained broadly unchanged compared to the prior comparable period.

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