Woolworths earnings slide 24% as consumer strain weighs on results

JSE-listed retailer Woolworths reported a 6.8% rise in turnover and concession sales to R81 billion for the 52 weeks ended 30 June 2025, it announced in a Sens statement on Wednesday.

Headline earnings per share dropped 23.9% to 268.1 cents amid subdued consumer sentiment and weak discretionary spending.

Read: Woolies food feeds growth while FBH plays catch-up

Woolworths share price

The group’s share price shed 2.05% on Wednesday morning, trading at R50.21.

The board declared a final gross cash dividend of 81 cents per ordinary share – 31.1% lower than the prior period. The total dividend for the year amounts to 188 cents, down 29.2% from 265.5 cents in the corresponding period in 2024.

Segmental performance 

Woolworths Food recorded an 11% increase in turnover and concession sales, while Woolies Dash, the group’s on-demand platform, delivered sales growth of 41.6% for the year.

Online channels continued their rapid expansion, with online food sales rising 32.9% and contributing 6.6% to total food sales.

Read: The margin glow-up: why retailers love beauty

Turnover and concession sales at Woolworths Fashion, Beauty and Home grew 4.7%, with online sales in this category up 22.6% and also contributing 6.6% to segment sales.

The group’s gross profit margin declined 120 basis points to 47.3% due to increased promotional activity, additional supply chain costs and higher inventory levels.

Woolworths highlighted “the strong maiden result” in its Ventures segment, which posted mid-teens sales growth. Woolworths Ventures houses food services, WCellar, and the pet and WEdit businesses.

In its Australian business, Country Road Group, gross profit margin dropped to 56.4% as high promotional activity dominated the sector and a weaker Australian dollar inflated input costs.

Group CEO Roy Bagattini said the results reflect the strength and resilience of Woolworths’s premium food business, and the “transformation” undertaken across its apparel operations.

“Following significant investment over the past few years, we have completed the heavy lifting, which now positions each of our businesses to deliver to their true and full potential through our loved and trusted brands.”

Outlook

Although inflation has eased and interest rates have begun to moderate, the group noted that business and consumer confidence remain subdued in South Africa and Australia, with discretionary spending likely to stay constrained in the near term.

Global uncertainty over the potential impact of higher US tariffs also presents additional headwinds to the macroeconomic outlook.

Listen: Woolies’s CEO talks Dash growth, fashion woes and beauty’s boom 

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