Officeworks reported a revenue increase of 4.6 per cent for the past year, despite seeing earnings slip by close to 15 per cent.
Overall revenue hit $3.17 billion for the year. Earnings of $181 million were 14.6 per cent lower than the prior year, which parent company Wesfarmers puts down to COVID-related temporary store closures in the first half.
Sales in higher-margin categories, such as office supplies and the store’s ‘print and create’ options were impacted by the lost of foot traffic to stores, while there was strong growth in technology and furniture as people continued to work and learn from home.
“Lower earnings in Officeworks for the year reflected the impact of trading restrictions and the margin impact of sales mix changes, as well as increased investment in the supply chain, data and digital capabilities and to support the launch of new products,” explains Wesfarmers MD Rob Scott.
“Higher fulfilment costs associated with lockdowns and temporary inefficiencies during the transition to the new customer fulfilment centre in Victoria also impacted earnings for the year.”
In addition, Officeworks upgraded 75 stores, opened two new stores and relocated three stores. There are currently 168 Officeworks stores across Australia.
