Wesfarmers experiences a Kmart glitch as its post-Coles era begins

Last year’s massive portfolio reshaping by new chief executive Rob Scott, the centrepiece of which was the demerger of Coles, always meant Wesfarmers’ shareholders would be far more exposed to the performance of their two star continuing businesses, Bunnings and Kmart. The start of a life without Coles hasn’t, however, quite gone to plan.
Wesfarmers’ trading update revealed Kmart’s comparable sales fell 0.6 per cent in the December half. While its sibling Target increased its comparable sales 0.5 per cent, earnings before interest and tax for the group’s department store division will fall from $415 million in the December half of 2017 to between $385 million and $400 million in the six months to 31 December last year. Sydney Morning Herald – Read more…