Wesfarmers Ltd report: Coles slows, Bunnings flies

The Wesfarmers Ltd (ASX:WES) share price has come off the boil today despite the company releasing its third quarter trading update this morning.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Wesfarmers Ltd (ASX: WES) share price has come off the boil today despite the company releasing its third quarter trading update this morning.

WES share price

WES share price
Source: Google Finance

Third Quarter Results

This morning, Wesfarmers released its third quarter results to the market, revealing:

  • Coles comparable food and liquor sales rose 0.7%
  • Total Coles sales (which includes Convenience stores) climbed 0.5%
  • Bunnings Warehouse sales jumped 7.7%
  • Kmart sales increased 2.5%
  • Target sales fell 18.1%
  • Officeworks sales rose 9%

For the nine months in its current financial year, Coles' total sales came in flat versus the prior year. Meanwhile, Wesfarmers' Bunnings Warehouse sales, excluding its recently established UK and Irish venture, are up 8.1%.

The company described the results as "pleasing".

"Coles' headline food and liquor sales increased by 1.2 per cent during the quarter, with the business investing more significantly in the customer offer," Managing Director Richard Goyder said.

"On an Easter adjusted basis, our sales growth in food was broadly in line with the second quarter trend while investment in the customer offer increased during the period," Coles Managing Director, John Durkan said. "It is necessary that we continue to proactively invest in the customer offer throughout this period of lower growth and increased competition to ensure we maintain our market leading customer offer." At quarter end, Coles had 796 stores, with 879 liquor outlets.

In the UK and Ireland, the group's Bunnings Warehouse makeover of HomeBase stores continues. Like for like transactions increased 2.2% over the prior year.

"Our first Bunnings Warehouse pilot stores have been well received by customers, team members, and the community," Bunnings UK and Ireland Managing Director, PJ Davis, said. "The team continues to progress the strategic plan and is focused on building strong foundations." There were 254 HomeBase stores at the end of the period.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Wesfarmers Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »