WOW - Woolworths Group

[Smurf1976]

WOW reporting on Wednesday
01/05/2025

Group sales up 3.2% with the core supermarkets in-store sales up 1.4% (2.9% excluding tobacco).

Consumers do seem to be seeking value however with own brand sales up 5.7% so clearly outperforming the average of all products.

Share price has gone net nowhere for the month however:

 

[ShareSuccess]

Buy Below 31.....Missed a Very good Opportunity to Buy below 28 in march....Will another opportunity appear?

 

[Dona Ferentes]

what took you so long?

Woolworths will pay $100 million to shut down the online marketplace MyDeal to reduce its losses and focus on more profitable parts of the business.

The supermarket giant earlier this year announced an assessment into unprofitable and low-return parts of its operations. Following that review, Woolworths today confirmed it will close the MyDeal website on September 30 and shift its attention to Big W Market and Everyday Market.

CEO Amanda Bardwell said the decision was made due to the "intensely competitive environment" and the "superior economics of marketplaces integrated into retail brands".
"The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed," she said in a statement.

 

[Smurf1976]

Buy Below 31.....Missed a Very good Opportunity to Buy below 28 in march....Will another opportunity appear?

By the look of the chart it is perhaps rolling over?

Or is that perhaps just an influence of end of financial year selling?

Not held although I've owned the stock in the past.

 

[Ferret]

Over the last couple of months I've noticed prices rising again at Woolies and Coles and also fewer and smaller points promotions from their loyalty schemes.

I think competition is subdued at the moment and this might lead to an uptick in their next results.

 

[mullokintyre]

Wow was supposed to be my safe pick for the yesrly comp, however it has proven to be anything but.
It is still June 30th here in London, so should qualify as a post on technical grounds.
Mick

 

[Smurf1976]

By the look of the chart it is perhaps rolling over?

Unfortunately that seems to be the case.

Chart shows daily closing price which makes the trend a bit clearer:

 

[Dona Ferentes]

$30 ... DOWN 10 %

there's going to be some navel gazing!

especially after yesterday’s well received Coles numbers

 

[finicky]

Go woke, go broke.

ronni.kahn
Edited•23w
Had my first meeting with Amanda Bardwell, new CEO of @woolworths_au and it was really great! We had a deep and meaningful - which doesn’t happen often in business meetings!! Our conversation touched on her deep personal values. She is working to embed her core beliefs of sustainability and community into her work at Woolworths. I’m excited for the future of @ozharvest’s collab with Woolworths. Feeling hopeful that head and heart can connect in big business!! Onwards!

 

[divs4ever]

to clarify my statement on my WOW holdings

the current holding is slightly less than the DRP shares earned in 2012 and 2013 on the inherited parcel !!

or less than one third of the DRP shares acquired by 2017 , when i started selling down as i was often disappointed in their choices made

and the bonus EDV shares were offloaded as well ( i still hold RGN formerly SCP )

but let's see if WOW can actually start turning itself around or conversely starts trading on par with COL ( share price-wise )

now maybe i am reading the wrong implications , but half-expect BIG W to be divested within 4 years

 

[divs4ever]

what i am surprised at is the current buyer's side

are they mostly shorters buying replacement stock , or retail folk buying the dip ( and div. )

has gone as low as $28.08 this morning

 

[finicky]

Chickens have come home to roost.
Impingement on profits whilst teaching minors that life is a free ride

Held

 

[finicky]

"In one year, Woolworths said it had given away over 100 million pieces of fruit - or over 41,000 tonnes of apples, bananas, pears and mandarins - since the program was launched."

 

[divs4ever]

Chickens have come home to roost.
Impingement on profits whilst teaching minors that life is a free ride

Held

View attachment 206986

those bananas don't look very ripe

they might leave a bad taste in the kiddie's digestion , one might have thought bananas nearing over-ripe would have been a better choice

now one ( a university , perhaps ) would use this as a behavioral study , whether it improves child behavior in the short and medium term , for instance on might expect to find half-eaten fruit in unusual places , and a trend for the youngsters to sample other products ( before/without being paid for )

but knowing WOW they are probably using the video collected to track future shop-lifters ( and on-sell the data )

now on the positive side that fruit possibly would have been put in the waste ( and pig food bins if that is still a thing ) and a PR tax write-off ( and waste disposal cost )

this might be worth further watching to see if this is a positive or negative

 

[finicky]

@divs4ever greenish bananas are choice - lower glycaemic response and with microbiota feeding resistant starch.

 

[divs4ever]

@divs4ever greenish bananas are choice - lower glycaemic response and with microbiota feeding resistant starch.

not my choice , unless planning to eat them in a week or so

but then i LOVE sugar rushes

 

[finicky]

i LOVE sugar rushes

Glycation is a process where sugars react with proteins and fats, forming harmful compounds called Advanced Glycation End Products (AGEs). These AGEs accumulate in the body, contributing to cellular damage and accelerating the aging process. While glycation naturally occurs with age, factors like a diet high in sugar and unhealthy fats, smoking, and other lifestyle choices can accelerate AGE formation, potentially leading to chronic diseases.

 

[finicky]

Woolworths Group Ltd (WOW) $28.51 - Market Matters

Woolworths Group Ltd (WOW) $28.51 Market Matters ASX buy recommendations

marketmatters.com.au

WOW -14.69%: was whacked on its FY26 result showing a steep profit decline and subsequent dividend cut. Its Australian food sales lag behind Coles—WOW was +2.1% versus Coles +4.9%. Woolies’ result showing a 19% fall in net profit couldn’t have come at a worse time, one day after Coles exceeded market expectations. Also, Big W posted a loss of $35 million last year compared with EBIT of $14 million in the year before, while sales rose by 1.1% to $4.64 billion. Margins were the issue, remaining under pressure due to more discounting.

FY25 Revenue $69.1bn, +1.7% YoY, below $69.17bn estimate.
NPAT before significant items $1.39bn, -19% YoY, but slightly above $1.38bn.
Final dividend was 45c, down from 57c YoY.
Australian food sales for the first 7 weeks of FY26 are “well below” Coles as the strong get stronger. WOW expects FY26 Australian food EBIT growth of mid to high single digits, in the $2.9-$3 bn range which is below estimates.

NB We will look at WOW v Coles in the morning, can one keep getting it so right and the other wrong?
MM has switched to neutral on WOW

 

[PZ.]

Looking for re-entry if it goes sub $28.

Someone said Go woke, go broke. Problem is Coles is no different. How did they go again ?

 

[Dona Ferentes]

Coles is leaner and more focused... as a columnist said of WOW

"A pet business here, a New Zealand supermarket chain there, a media business, a logistics business, a food services business, and, of course, Big W.....

"For more than a decade, successive Woolworths chief executives have persevered with the discount department store chain, convinced that they’d found the strategy refresh, the turnaround plan, or the new operating model to turn the thing around.

"Grant O’Brien tried and failed. Brad Banducci tried and failed. But remarkably, after conducting a wholesale review of every division inside Woolworths, Bardwell is giving it yet another go."