News: WOW Woolworths Says Customers Are Increasingly Cautious And Trading Down

Feb 21 (Reuters) - Woolworths Group Ltd (WOW) :

• OUTSIDE OF SOLID TRADING IN KEY EVENTS LIKE BLACK FRIDAY AND CHRISTMAS, CUSTOMERS ARE INCREASINGLY CAUTIOUS AND TRADING DOWN
• SALES IN THE FIRST SEVEN WEEKS OF H2 F24 HAVE CONTINUED TO MODERATE
• HY NPAT ATTRIBUTABLE BEFORE SIGNIFICANT ITEMS A$929 MILLION VERSUS A$907 MILLION REPORTED LAST YEAR
• HY AUSTRALIAN FOOD GROSS MARGIN 28.9%
• MANAGING COST-OF-LIVING PRESSURES REMAINS KEY ISSUE FOR OUR CUSTOMERS
• NEW ZEALAND FOOD SALES FOR THE FIRST SEVEN WEEKS INCREASED BY APPROXIMATELY 1%
• OTHER COSTS, EXCLUDING WOOLWORTHS GROUP’S CONTRIBUTION FROM PETSTOCK GROUP AND ENDEAVOUR TO BE A$200 - A$220 MILLION FOR FY
• EXPECT AN IMPROVING SALES TREND IN Q4 FOR BIG W
• WITH LAUNCH OF EVERYDAY REWARDS AND ONGOING REBRANDING, EXPECT TRANSFORMATION COSTS OF A$15 MILLION – A$25 MILLION IN H2 FOR NZ FOOD
• H2 EBIT TO BE AROUND BREAKEVEN LEVELS FOR BIG W
• CONFIDENT IN PLANS TO MANAGE NEAR-TERM CHALLENGES INCLUDING ADDRESSING COST-OF-LIVING PRESSURES