WFAFF - Wesfarmers: Bunnings And Officeworks Drive Strong Sales And EBIT In 2H20
Wesfarmers (WES) has released a retail trading update on 9th of June with very strong sales growth for the 5 months ended May 2020 for Bunnings (+19.2%) and Officeworks (+27.8%), with an improvement in recent sales momentum at Kmart (+4.1%) and Target (-1.8%). Sales strength in Bunnings and Officeworks is due to a bring forward, unplanned expenditure and new participants in the category. Bunnings EBIT margin expansion is strong but one-off costs moderate upside in 2H20, yet support future EBIT margin expansion. Online remains an area of strong growth while further Kmart