September hasn’t been a great month so far for the Woolworths (ASX:WOW) share price

There have been a couple of catalysts that have added pressure on the Woolworths share price this month.

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This month has not been kind to the Woolworths Group Ltd (ASX: WOW) share price.

Shares in the supermarket giant have tumbled more than 6.5% since the start of September.

By comparison, the broader S&P/ASX 200 Index (ASX: XJO) has dipped 2.09% since the start of the month.

Let’s take a look at what’s been weighing down Woolworths shares.

Why is the Woolworths share price struggling?

There have been many catalysts that have added pressure on the Woolworths share price this month.

In addition to general market volatility, the supermarket giant has also had its own developments to deal with.

Most recently, Woolworths reported shortages in its latest collectables promotion called Woolworths Bricks.

Earlier this month, the supermarket giant also made headlines after reducing its holdings in food box delivery company Marley Spoon AG (ASX: MMM).

Woolworths also released its Sustainability Plan 2025 in early September, noting several goals for the future.

How did Woolworths perform in FY21?

Late last month, shares in Woolworths received a boost after the company reported strong full-year results for FY21.

With COVID-19 lockdowns forcing many Australians to stay at home, a marked increase in consumption was noted.

This was reflected in the supermarket giant’s Australian food sales, which increased 5.4% to $44.4 billion for FY21.

Highlights from the company’s report included:

  • Group sales rose 5.7% to $67,278 million
  • eCommerce sales surged 58.1% to $5,602 million
  • Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
  • Group net profit after tax up 22.9% to $1,972 million

Thanks to an expansion in its margins, Woolworths shareholders were rewarded with a 14.6% increase in final dividend of 55 cents per share.

Snapshot of the Woolworths share price

Despite tumbling this past month, shares in Woolworths remain more than 12% higher since the start of the year.

In addition to its full-year report, the company also made headlines earlier this year following the demerger of its Endeavour business.

The Woolworths share price closed yesterday’s session slightly lower at $39.06.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Marley Spoon AG. The Motley Fool Australia owns shares of and has recommended Marley Spoon AG. 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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