Wesfarmers CEO Braces For Woolworths Comeback
Reports say that Wesfarmers CEO Richard Goyder has been softening investor expectations ahead of the release of Coles’ latest interim results.
“Richard Goyder has told people Woolworths’ like-for-like [sales growth] will be better than Coles and there’s no doubt in my mind Woolworths will have crossed Coles” one source told the Sydney Morning Herald.
It’s believed that both Goyder and Coles managing director John Durkan have spoken to analysts and investors, admitting suspicions that Woolworths’ $1 billion investment in the price war between the two supermarkets could see them overtake Coles for the first time in quarterly growth.
If this proves to be the case, it’ll be the first time Woolworths beats Coles on quarterly growth in over 30 quarters.
Morgan Stanley analyst Tom Kierath claims the chain’s same-store sales growth will accelerate to 1.5 per cent compared to an increase of just 0.5 per cent for Coles.
Other analysts have suggested Coles could lag Woolworths by as much 0.5 per cent when it comes to same-store sales growth.