Woolworths-owned Big W has reported softer results for the year ending June 2025, with sales slipping and profits under pressure from heavy discounting, although online traffic delivered a boost.

The retailer posted sales of $4.64 billion, down 0.8 per cent on the prior year, while EBITDA fell 19.7 per cent.

Margins eased from 30.2 per cent to 29.5 per cent, reflecting clearance activity and a shift towards lower-priced products.

Profit fell by $49 million.

Despite the headline decline, second-half performance improved, with sales rising 3.1 per cent on a normalised basis, driven by Big W’s Toy Sale event in the fourth quarter. Toys proved a standout category, fuelled by strong demand for Lububu dolls.

The homewares category also recorded solid gains, supported by improved sourcing, better availability and a rise in multiple-item purchases. Everyday categories delivered mixed results, with beauty performing well early in the year before softening, while cleaning and pet struggled in a competitive market. Clothing profitability weakened due to seasonal timing issues and higher clearance activity.

E-commerce was a bright spot. Online sales (excluding Big W Market) rose 1.7 per cent to $489 million, or 4.0 per cent on a normalised basis. Including Big W Market, online gross merchandise value climbed 44.1 per cent to $739 million, with penetration reaching 15.1 per cent. Website and app traffic grew more than 20 per cent, supported by an expanded third-party product range of more than 800,000 items through the MyDeal platform.

Operating costs rose 2.4 per cent on a normalised basis, with efficiency improvements partly offsetting wage growth. Inventory levels were higher, reflecting earlier delivery of spring/summer ranges, replenishment in homewares, and growth in toys.

The company noted that stock loss was broadly in line with the prior year, despite rising retail theft incidents in Victoria.

Big W also highlighted its community contribution, raising more than $1.4 million for children’s hospitals and research institutes through Easter and Toy Sale fundraising initiatives.