Wesfarmers (ASX:WES) report weakness in sales of apparel

Company News

by Rachael Jones

Wesfarmers (ASX:WES) report that since the start of the calendar year, overall momentum in the Group’s retail sales has continued in line with the first half of the financial year.

Strong sales growth has continued in Bunnings, Kmart and Officeworks, supported by strong growth in online sales.

They have seen significant demand for essential cleaning and hygiene products, home office equipment and technology, and education supplies.

Performance to date in the Group’s industrial businesses has also generally continued in line with management expectations, other than a further decline in the Saudi CP price which has impacted realised prices in the energy segment of Wesfarmers Chemicals, Energy and Fertilisers.

In recent days they have seen weakness in sales of discretionary products such as apparel, particularly in Target.

Meanwhile, across the Group, more than 90 per cent of supplier factories are now operational and returning to full capacity.

Shares in Wesfarmers (ASX:WES) closed 2.02 per cent higher at $34.89 yesterday.