Own Wesfarmers shares? Here's how they performed last month

Wesfarmers shares had a month to forget in May.

| More on:
A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

Image source: Getty Images

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

It's probably safe to say that Wesfarmers Ltd (ASX: WES) is one of the most popular ASX 200 shares on the share market. This industrial and retail conglomerate has been around for decades and owns some of the country's best-known retail outlets, such as Kmart, Officeworks and Bunnings.

But Wesfarmers' bevvy of other, smaller but diverse businesses makes it a rather unique share on the ASX. What other ASX share has interests ranging from Bunnings and Kmart to lithium, clothing and gas?

So given we've established how popular and wide-ranging Wesfarmers is as a company, let's take a look to see how the Wesfarmers share price fared over the month of May just gone.

Wesfarmers ended April at a share price of $51.97. But by the end of the month, the Wesfarmers share price had fallen to $47.67. That's a drop worth a rather nasty 8.27%. This loss was a significant underperformance of the broader S&P/ASX 200 Index (ASX: XJO), which also fell over May, but only by 3%.

You can see this illustrated below:

So what went so wrong for Wesfarmers shares last month?

Wesfarmers shares drop on the one that got away

Well, there was only one major development that involved Wesfarmers last month, and this may be responsible for the company's lacklustre performance over May. Back in April, Wesfarmers announced a proposal to acquire Silk Laser Australia Ltd (ASX: SLA) in its entirety for a price of $3.15 per share. Most investors assumed this was a done deal, until last month.

On 23 May, Silk Laser revealed that it had received a second, competing offer for its business. The company announced that it had also been approached by the Hong Kong-based EC Healthcare. EC Healthcare put up a much-improved $3.35 per share offer.

Silk has declared this bid superior, and it looks as though Wesfarmers isn't going to engage in a bidding war. That's because the 30 May deadline for Wesfarmers to respond has come and gone without a renewed bid from the company.

Wesfarmers investors seemed to be disappointed with this outcome, judging by the fact that most of the company's May share price losses occurred in the back half of the month when this saga was unfolding.

As such, it seems that Wesfarmers seemingly letting Silk Laser slip through its fingers is the major reason why this company had such a disappointing May. But even so, the Wesfarmers share price remains up by 5.6% in 2023 – an outcome which all shareholders can probably be happy with.

 

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Silk Laser Australia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retail Shares

JB Hi-Fi staffer helping customer share price
Retail Shares

JB Hi-Fi shares leap to record high despite legal scuffle

The corporate watchdog is alleging The Good Guys haven't been such 'good guys' after all.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Retail Shares

The Wesfarmers share price rocketed 32% in FY 2024! Here's how

Wesfarmers shares smashed the benchmark in FY 2024. But how?

Read more »

A woman peers through a bunch of recycled clothes on hangers and looks amazed.
Opinions

Is this the best dividend share in the ASX 200?

I think this cheap ASX retail share is one of the best ASX dividend shares to buy now.

Read more »

JB Hi-Fi staffer helping customer share price
Retail Shares

How ASX 200 retail shares just got a boost from 'watchful shoppers'

ASX 200 retail shares just enjoyed a boost from the latest ABS retail sales report. But why?

Read more »

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Share Market News

Why is this ASX retail stock rocketing 17% during today's market selloff?

This retailer has reported a big improvement in its performance.

Read more »

Friends spending the day in the shopping mall holding shopping bags.
Retail Shares

Are ASX 200 retail shares attractive amid the FY25 outlook?

These retailers are facing a lot of uncertainty at the moment.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Retail Shares

3 reasons to buy Wesfarmers shares like there's no tomorrow

There's plenty of flesh to put on the investment skeleton for Wesfarmers.

Read more »

A woman looks at a tablet device while in the aisles of a hardware style store amid stacked boxes on shelves representing Bunnings and the Wesfarmers share price
Retail Shares

Is the FY25 outlook compelling for Wesfarmers shares?

Should owners of Wesfarmers shares be optimistic about the future?

Read more »