Woolworths Earnings: Profit as Guided but New CEO the Big Surprise

Narrow-moat Woolworths’ first-half fiscal 2024 EBIT of AUD 1.69 billion was within the guidance range from late January 2024. The core Australian supermarkets business' solid performance largely offset lower profits from its struggling New Zealand and discount department store segments. Sales momentum deteriorated across all retailing businesses in the first seven weeks of the second half. Against a backdrop of higher wages, we expect near-term operating margins to be under pressure.