How has the Woolworths share price performed since reporting results?

The pandemic saw the ASX 200 retail giant’s eCommerce sales takeoff.

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The Woolworths Group Ltd (ASX: WOW) share price closed up a slender 0.1% yesterday to finish the day at $39.35 per share.

Woolworths’ share price managed to shake off the broader selling trend, which saw the S&P/ASX 200 Index (ASX: XJO) close the day down 0.3%.

It’s been 3 weeks now since the supermarket giant reported its full year results for the 2021 financial year (FY21). With that in mind we take a look at how Woolworths shares have been tracking since releasing those results.

But first, a quick recap…

What results did the ASX 200 retail giant report for FY21?

Investors were keeping a keen eye on the Woolworths share price when the company announced its FY21 results before market open on 26 August.

Among the key results, Woolies reported a 5.7% year-on-year increase in group sales to $67.28 billion.

With COVID-19 seeing many people confined to their homes, or reluctant to venture into public spaces, the company’s eCommerce sales reached $5.60 billion, a massive 58.1% increase compared to FY20.

Woolworths chair Gordon Cairns commented on the surge in eCommerce, saying, “[O]ur investment in eCommerce over many years … has helped to drive sales of over $5.5 billion this year. Despite this increased investment, normalised Group ROFE [Return on Funds Employed] increased 1.4 points during the year to 15.1%.”

Woolworths’ earnings before interest and tax of $3.66 billion were up 13.7% year-on-year, while net profit after tax (NPAT) leapt 22.9% to $1.97 billion.

The strong results enabled Woolies to declare a final dividend of 55 cents per share, up from a final dividend of 49 cents per share in FY20.

On the same day, Woolies also reported its intention to conduct a $2 billion off-market share buyback.

How has the Woolworths share price moved since reporting those results?

On the day it reported, 26 August, the Woolworths share price gained 0.4%, closing at $40.99 per share.

Since market open on the reporting day, Woolies shares have lost 3.3%. By comparison, the ASX 200 is down 1.4% over that same period.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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