Wesfarmers has reported a revenue drop for its uniform subsidiary Workwear Group in the first half of FY25.
The overarching group cited a reduction in demand for corporate uniforms, which were partially offset by higher demand for the industrial workwear brands.
Workwear Group manages Hard Yakka, KingGee, NNT and Totally Workwear brands and retailers.
“Earnings were below the prior corresponding period due to the impact of restructuring costs, lower sales and a weaker Australian dollar,” Wesfarmers reported.
Wesfarmers combines the financial performance of Workwear Group within its industrial and safety division, which also includes industrial supplier Blackwoods, NZ Safety Blackwoods and Coregas.
Revenue for industrial and safety was $990 million for the first half of FY25, down 1.9 per cent compared to the same half in FY24.
Earnings were also down by 8.2 per cent to $45 million. The earnings result includes $7 million in restructuring costs across Blackwoods and Workwear Group. According to Wesfarmers, these restructuring costs reflect actions to reset the operating model and cost base in both businesses, “enabled by recent system investments and to address the more challenging trading environment.”
“The benefits of these actions started to materialise during the half. Excluding restructuring costs, earnings were $52 million, or 6.1 per cent above the prior corresponding period.
However, trading conditions were challenging in the half, Wesfarmers reported, with reduced customer demand in Blackwoods and Workwear Group reflecting the economic conditions affecting customers.