22 April 2010
Wesfarmers (WES) is a conglomerate that has diverse operations in a number of sectors including retail, energy, insurance, industrials, chemicals and fertilizers.
WES reported 3Q10 retail sales today, with the result coming in below expectations.
Over the year, sales at Coles rose 4.9%, Kmart sales climbed 4%, whilst Target sales were flat. Home Improvement and Office Supplies recorded a strong result, with sales up 7.9% on-year.
The weak sales growth at Coles was put down to food price deflation, and Target’s flat sales number was due to the fading out of government stimulus.
WES continued to maintain a cautious outlook for 4Q sales, sighting rising interest rates and cycling of fiscal stimulus as the main headwinds.
WES has made good progress in terms of its Australian share price so far, trading from as low as $15.00 in February 2009 to trading above the $30 mark in recent sessions.
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