Woolworths (WOW) is one of Australia’s oldest and largest retailers, with businesses spanning grocery, liquor, petrol, and consumer electronics. WOW is also one the more recognisable blue chip shares in the Australian share market.
WOW reported its FY10 sales numbers on 21 July, with sales increasing 4.2% from a year ago.
4Q10 Australian Food & Liquor sales rose 3.4%, with the result mainly impacted by food price deflation.
Quarterly sales at Big W and consumer electronics slumped 9.3% and 3.3%, respectively, with WOW attributing the drop to the cycling of fiscal stimulus and price deflation.
Overall, the results disappointed the market, with participants expecting better sales numbers from the group’s supermarket division.
WOW’s result meant it was one of the shares to sell on the day of the announcement, illustrated by an almost 2% fall in its stock price.