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Woolworths shares have dropped to an all-time low, falling 14% or 0.9p to close at 5.5p, following the company's warning of a "marked" downturn yesterday, reports the Independent.
City analysts are forecasting that Woolworths Group will struggle to break even at group level this year, and some expect it not to pay a dividend for the 12 months to the end of January.
Pali International analyst Nick Bubb told the Independent that "the situation looks hopeless." He explained that if Woolworths cannot add value by breaking up the group – as selling 2 entertain to get rid of debt would just leave a lossmaking retail chain and a volatile entertainment wholesale arm – then the group's "shareholders only have a long lingering death to look forward to".
Woolworths revealed figures for the six weeks to 26th July yesterday (29th July), posting a decrease in like-for-like sales in its retail division of 6.7%. The company said it expected "disappointing" margins for the first half of its financial year, at about 125 basis points