COMPANY COMMENT
Woolworths upward share blip surprises
Woolworths records a poor set of results and the R6.9bn write-off on David Jones is the ugly icing on a generally unappetising cake
The Woolworths share price shot up to R67.70 in early trade after an upbeat presentation of a downbeat set of results for the six months to end-December. But later on Thursday the market seemed to have had second thoughts and the share shed some of its gains, closing 1.85% up at R65.40. By any measure they were a poor set of results and the R6.9bn write-off on David Jones was the ugly icing on a generally unappetising cake. One analyst said the results were pretty much in line with the grim expectations analysts had been fed by the company in January and was surprised at any positive price response. Country Road margins were a little better than expected, which was encouraging as it suggested management’s corrective action was bearing fruit. But while Country Road was looking stronger it was still too early to assume the expensive Australian David Jones adventure was on the right course and no further write-downs would be needed. The share is on a forward price:earnings rating of 16...
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