Woolworths Holdings Limited (South Africa) have reported double-digit growth for Country Road Group and its recently sold subsidiary David Jones within Australia and New Zealand for the first half of FY23 (up to December 25).
Country Road Group sales grew by 25.5% and by 26.6% in comparable stores, underpinned by strong performances from the Country Road, Politix and Witchery brands in particular. The last six weeks of trade, which are comparable to that of the prior period, saw Country Road Group delivering sales growth of 8.5%.
Its online sales contributed 26.1% in total sales, compared to 33.8% in the prior period. Space was reduced in the same period by 5.5%.
David Jones’ turnover and concession sales increased by 31.8% and by 27.6% on a comparable store basis, with its flagship and CBD stores reportedly performing ahead of expectations. Sales in the last six weeks grew by 2.3%.
Online sales contributed 17.2% of total sales, compared to 28.1% for the prior period.
Trading space was reduced by 3.6% relative to the prior period.
According to WHL, the growth in sales are despite the increased inflationary pressures faced by consumers during the period.
The Group’s overall turnover and concession sales for the 26 weeks to December 25 increased by 18.5% compared to the same period last year, and by 16.3% in constant currency terms.
During the last six weeks of the period, which is directly comparable to the prior period, Group turnover and concession sales increased by 8.8%, underpinned by strong Black Friday and festive season trade.
WHL said the return of customers to physical stores, particularly in Australia, resulted in a substantial increase in brick-and-mortar sales, with the contribution of online sales moderating to 10.9% of total turnover and concession sales, compared to 13.7% for the prior period.
On December 19, 2022 the Group entered into an agreement to sell its entire shareholding in its Australian subsidiary, David Jones. The agreement is subject to terms and conditions customary for transactions of this nature, and WHL anticipates the transaction to complete by the end of March 2023, with the final proceeds to be determined based on completion accounts.
WHL management said it expects to realise value in excess of the carrying value of the David Jones assets.
David Jones will be reported as a discontinued operation in the Group’s Interim Results, which will be released later this year.