LISTEN
Watch
on air now
Advertisement
Advertisement
Advertisement

Patchy retail growth for Wesfarmers as Kmart’s sales worse than expected

Article image for Patchy retail growth for Wesfarmers as Kmart’s sales worse than expected

Wesfarmers is expected to begin its post-Coles era with fewer debt thanks to the businesses it’s offloaded.

But a fall in earnings from Kmart is expected to be a drag on its half-year results.

The company has predicted it will post earnings before interest and tax of between $385 million and $400 million for its department stores division.

Wesfarmers also says it expects to gain between $2.1 billion and $2.3 billion from the November demerger of its Coles supermarket division.

CEO Rob Scott tells Ross Greenwood growth in sales at Kmart “was a bit below our expectations”.

“One area that was a bit below expectations through the Christmas trading period was our department store division.”

Advertisement