.jpg)
2 hours ago
3
Article content
(Bloomberg) — Australian conglomerate Wesfarmers Ltd.’s shares dropped the most since October after the first-half performance of its key retail units fell short of analyst expectations.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Shares in the group, which also produces lithium and industrial products, closed down 5.6% in Sydney on Thursday, the biggest drop since Oct. 30. Kmart Australia Ltd. and Bunnings Group, which make up the lion’s share of Wesfarmers’ revenue, brought in A$17 billion ($12 billion) in the six months through December, below estimates.
Article content
Article content
Article content
Persistent inflation continues to affect shoppers, Wesfarmers Chief Executive Officer Rob Scott said in an interview with Bloomberg TV Thursday.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“We generally have inflation tracking at almost double the level of economic growth in Australia,” Scott said. Following the recent interest rate hike, “we are seeing customers be more value conscious,” he said, adding the company has lowered prices across thousands of products throughout its retail chains.
Article content
The group’s retail arm has “historically performed quite well in these environments,” Scott said.
Article content
While the country’s consumer spending has been holding up, according to Commonwealth Bank of Australia, that momentum is expected to slow as borrowing costs rise. Thursday’s jobs data was stronger than forecast, which reinforced expectations of another interest rate increase in May.
Article content
Citigroup Inc. analyst Adrian Lemme said that Bunnings revenue was 2% short of their forecast while Kmart’s revenue missed by 1%. Across the first six weeks of 2026, Bunnings and Officeworks tracked in line with expectations, while Kmart was ahead of the 3.2% expected growth, according to Citi Research.
Article content
Wesfarmers’ other divisions, including chemicals, energy and fertilizers, also failed to hit estimates, though its health and industrial safety divisions outperformed.
Article content
High valuations in the S&P/ASX 200 index have created an environment of high expectations this earnings season, increasing the risk of sharp selloffs for companies that disappoint.
Article content
—With assistance from Andy Clarke and Paul Allen.
Article content
(Adds CEO comments in third to fifth paragraphs, context in last paragraph.)
Article content
English (US)