JOHANNESBURG, July 30 (Reuters) – South African retailer Woolworths Holdings (WHLJ.J), said on Thursday it expects annual profit to rise modestly after a tough second half, as higher fuel prices, inflation and interest rate rises linked to conflict in the Middle East curbed consumer spending.
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Woolworths said headline earnings per share (HEPS) for the 52 weeks ended June 28 likely increased by 2.5% to 7.5%, to between 274.8 cents and 288.2 cents from 268.1 in the previous year.
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Group turnover and concession sales rose 4.3%, or 4.8% on a constant-currency basis. However, second-half growth slowed to 3.3%.
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Woolworths South Africa delivered turnover and concession sales growth of 5.4%, with the food business up 5.7%, while the fashion, beauty and home unit grew sales by 4.4%.
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Promotional activity and clearance of excess inventory pressured margins in the fashion, beauty and home division.
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In Australia and New Zealand, Country Road Group sales rose 1%, although second-half sales declined 0.5%.
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Country Road returned to full-year profitability due to the reduced cost of business and tighter control of discounting.
Reporting by Nqobile Dludla; Editing by Christopher Cushing.
