The Wesfarmers Ltd (ASX: WES) share price has come off the boil today despite the company releasing its third quarter trading update this morning.
WES share price
Third Quarter Results
This morning, Wesfarmers released its third quarter results to the market, revealing:
- Coles comparable food and liquor sales rose 0.7%
- Total Coles sales (which includes Convenience stores) climbed 0.5%
- Bunnings Warehouse sales jumped 7.7%
- Kmart sales increased 2.5%
- Target sales fell 18.1%
- Officeworks sales rose 9%
For the nine months in its current financial year, Coles' total sales came in flat versus the prior year. Meanwhile, Wesfarmers' Bunnings Warehouse sales, excluding its recently established UK and Irish venture, are up 8.1%.
The company described the results as "pleasing".
"Coles' headline food and liquor sales increased by 1.2 per cent during the quarter, with the business investing more significantly in the customer offer," Managing Director Richard Goyder said.
"On an Easter adjusted basis, our sales growth in food was broadly in line with the second quarter trend while investment in the customer offer increased during the period," Coles Managing Director, John Durkan said. "It is necessary that we continue to proactively invest in the customer offer throughout this period of lower growth and increased competition to ensure we maintain our market leading customer offer." At quarter end, Coles had 796 stores, with 879 liquor outlets.
In the UK and Ireland, the group's Bunnings Warehouse makeover of HomeBase stores continues. Like for like transactions increased 2.2% over the prior year.
"Our first Bunnings Warehouse pilot stores have been well received by customers, team members, and the community," Bunnings UK and Ireland Managing Director, PJ Davis, said. "The team continues to progress the strategic plan and is focused on building strong foundations." There were 254 HomeBase stores at the end of the period.
