By
Reuters
Published
Nov 19, 2009
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Woolworths first half EPS to fall 20%, shares dip

By
Reuters
Published
Nov 19, 2009

JOHANNESBURG, Nov 19 (Reuters) - South African clothing and food retailer Woolworths (WHLJ.J) expects a 20 percent fall in first-half earnings per share and said economic conditions were expected to be tough for the remainder of the 2010 financial year.




The company said its results for the six months to end-December would be affected by profit earned on the disposal of a 50 percent plus one share of Woolworths Financial Services to Absa Group (ASAJ.J) last year.

The group said its financial services loan book grew 3.9 percent year-on-year at the end of October, while the rate of bad debts for the four months to end-October was at 8.2 percent.

Sales for the 20 weeks ended November 15 rose 8.1 percent while comparable store sales increased by 3.8 percent, the company said.

Shares in the retailer were down 2.46 percent to 17.07 rand by 1415 GMT, underperforming the JSE retailers index .JGERE, which fell 0.82. percent.

South African retailers have been struggling as consumers in Africa's biggest economy rein in spending with upmarket food retailers like Woolworths being the hardest hit.

(Reporting by Phakamisa Ndzamela)

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