Johannesburg – Sales for retailer Woolworths are up 6.7%, compared to the previous year. However Boxing Day impacted some of its businesses.
This is according to the trading update released by the group on Thursday.
Its clothing and merchandise, and food sales each grew by 3.5% and 9.5% respectively. However sales growth for department store chain David Jones and clothing group Country Road were negatively impacted by the timing of Boxing Day, the group stated.
David Jones sales growth was down 2.7% and sales growth for Country Road was down by 1.1%.
The inclusion of Australian men’s retailer Politix under Country Road Group was a positive. Woolworths acquired Politix last year with the expectation that it would increase the company’s earnings per share.
Annualised impairments were up from 4.8% in 2015 to 5.9%.
The group indicated that earnings per share for the 26-week period ending on 25 December 2016 would be higher than the previous year given the profit from the disposal of its David Jones Market Street property in Sydney. However growth in headline earnings per share is expected to be negative.
The group will announce its interim financial results on 16 February 2017.
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Last year Woolworths financial results showed strong performance following a turnaround in some of its businesses. The group anticipated that economic conditions would become tough, as interest rates were expected to increase.Read Fin24's top stories trending on Twitter: Fin24’s top stories