WLW Woolworths

RNS Number:6462P
Woolworths Group PLC
17 January 2007

17 January 2007



WOOLWORTHS GROUP PLC CHRISTMAS TRADING UPDATE

Woolworths Group plc is today updating the market on trading performance over
the 6 weeks to the 13 January 2007.

Total Group sales in the 6 weeks to 13 January increased by 2.2 %.

WOOLWORTHS
In the 6 weeks to 13 January 2007, like-for-like sales in the Woolworths retail
chain declined by 4.6%. Throughout this trading period, control was maintained
on gross margins and stock levels. As a consequence, it is anticipated that
selling margins for the full year will increase by at least 100 basis points and
that Woolworths' year end retail stocks will be at least #20m lower than the
prior year end.

Customer response to our enhanced multichannel capability and the launch of the
Big Red Book was very positive. Resulting customer orders exceeded expectations
and as a consequence multichannel sales grew over the 6 weeks by 204%. Despite
this rapid growth, we were able to maintain an excellent customer experience
with reliable fulfillment of multichannel orders, although maintaining service
levels added some unbudgeted cost which we do not anticipate will recur.

In the run-up to Christmas, the most difficult areas were the CD, DVD and
seasonal confectionery product categories, where market weakness was driven by
marked price deflation. The Toys and Clothing category performances were
comparatively strong, the latter due to the investment in in-store Ladybird
Shops. Sales of merchandise in the January Sale have been ahead of the prior
year with improved sell-throughs.

2ENTERTAIN
Trading in the key Christmas period was in line with our expectations for
2entertain, our joint venture with BBC Worldwide. DVD sales of Planet Earth, the
BBC's natural history series, were the most notable sales success in the run-up
to Christmas. Within the 2entertain product line up we have many key brands and
artists such as Little Britain, Dr Who, Clarkson and Catherine Tate, and these
delivered significant levels of sales. The most disappointing sector of the DVD
market was interactive DVD, where too many titles were released relative to
demand in this comparatively new market. One of the few clear hits to emerge was
2entertains' "A Question of Sport" based on the BBC programme of the same name.

EUK and THE
Sales of the combined EUK and THE increased by 24.2%. Margins and costs were in
line with internal targets and we therefore expect a satisfactory trading
profit.

In early January, Music Zone, a customer of THE, entered Administration. We
continue to work with the Administrators and through the Courts to recover the
debt due to THE. It is not yet possible to be precise about the level of
uninsured loss, but it is estimated to be between #2m and #4m.

BERTRAM ACQUISITION

We have today reached agreement to acquire Bertram Group Limited a leading book
wholesaler. This will strengthen our entertainment wholesale business. Further
details are contained on a separate RNS announcement

GROUP COMMENTARY

At this stage, we anticipate that the trading profit for the full year,
excluding the impact of Music Zone, should be within the current range of market
forecasts. As previously indicated, this will represent a significant reduction
in year-on-year profitability, in part reflecting the impact of the decline in
the CD and DVD sales for Woolworths retail. The result will also reflect the
costs of completing the 10/10 refurbishment programme, establishing a
substantial multichannel presence and broadening of our customer base through
the acquisition of THE.

Commenting on Christmas trading, Trevor Bish-Jones, Chief Executive, said:

"Both 2entertain and EUK performed well over the Christmas trading period and in
the full year to date. Woolworths retail found some of its traditional markets
more difficult, leading to disappointing like-for-like sales over the Christmas
weeks. Despite this, stock levels have been well controlled and we continue to
improve our gross margins. We continue to work at building a better business
through necessary investment in stores and systems and the development of a
multichannel capability which is being rapidly embraced by our customers."


Enquiries

Stephen East, Group Finance Director, Woolworths Group plc         020 7479 5179

Kirstie Hamilton, Tulchan Communications                           020 7353 4200

Celia Gordon Shute, Tulchan Communications                         020 7353 4200



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

TSTDGGMMVNLGNZG

Woolworths (LSE:WLW)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024

Woolworths (LSE:WLW)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024