Coles’ sales bounce back but earnings under pressure ahead of spin-off
Coles has posted its best sales results in almost two years but has warned that higher staff costs could put further pressure on its earnings as the supermarket chain prepares to be spun off as a stand-alone company.
The supermarkets’ conglomerate owner Wesfarmers revealed better than expected underlying earnings on Wednesday, thanks to growth at Bunnings and Kmart, sending its share price surging to an all-time high.
The stock’s 4 per cent jump came despite Wesfarmers’ full-year net profit plunging 57 per cent, thanks to its disastrous attempt to expand Bunnings into the UK and Ireland.
At Coles, its largest business, comparable food sales grew 1.8 per cent in the three months to July 30, which is its best result since the first quarter of financial 2017 and follows six quarters of being trounced by rival Woolworths. Sydney Morning Herald – Read more…