Officeworks “Strong” After Oomph
Officeworks EBIT was up almost 10% to % $93m, reporting “strong earnings growth” in its latest earnings statement.
The Westfarmers group, owners of Coles, reported a sales up 3% to $59.8 bn for year end June 30, including supermarket, office supplies and liquor. Profits surged 6.3% to $2.2bn.
Officeworks sales grew 1.6% to $1.5 bn, as it moves to new store format. Online sales were up by double digits.
MD John Gillam said sales were higher with “pleasing growth in transactions and units sold” with online enhancements, range expansion.
The retailer has also opened several new stores of late, including several in Melbourne, Sydney CBD – 13 in the last year and says it is continuing to invest in its existing network.
Officeworks new retail format is now in place in half its store network.
Gillam also reported “good progress” on improving the customer offer.
The Westfarmers owned retailer also reported improved margin – up 0.5% to 6.2% compared to FY 2012.
|Looking forward, the retail forecasts “modest” sales growth, saying “competitive pressure on sales margin remains strong.”
Gillam also pledged to expand, upgrade store network further.