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<\/a><\/p>\nWoolworths Fashion, Beauty and Home (FBH)<\/strong><\/p>\n Sales and comparable store sales both grew by 2.2% and by 0.9% after adjusting for the shift in trading weeks. Price movement in Fashion categories was 4.0% and overall net space growth across FBH was 1.2%.<\/p>\n Woolworths said that its Black Friday performance was disappointing “due to under-participation”. It said that womenswear underperformed as a result of some product failure, a lack of newness in summer and higher price points, which also impacted sales and volumes.<\/p>\n Gross profit margin decreased by 0.5% to 46.6% mainly due to stock write-offs as South African brands exit the\u00a0 Australian market. Expenses grew by 4.8%, while store costs increased by 3.7%, resulting in negative operating leverage.<\/p>\n Operating profit decreased by 8.9% to R834 million, with an operating margin of 11.5%.<\/p>\n Woolworths Food<\/strong><\/p>\n Turnover and concession sales increased by 8.1%, and by 7.8% after adjusting for the shift in trading weeks, with comparable-store sales 5.4% higher and price movement of 5.1%.<\/p>\n The business has maintained positive volume growth for the period and continues to grow market share, the group said. Net space growth was 4.0%.<\/p>\n Gross profit margin of 24.6% was in line with the prior period despite further price investment.<\/p>\n Expenses grew by 8.5% and operating profit increased by 8.0% to R1,157 million, with an operating margin of 6.9%.<\/p>\n Woolworths Financial Services<\/strong><\/p>\n The Woolworths Financial Services book reflected positive year-on-year growth of 8.3% as at the end of December 2019. The annualised impairment rate for the six months ended 31 December 2019 was 3.3% (six months ended 31 December 2018: 3.2%).<\/p>\n Looking ahead, Woolworths said that in South Africa, consumers remain under pressure from a weak economy amid continued power outages.<\/p>\n FBH will focus on improving performance through better pricing and ranges, particularly in womenswear, it said. Food is expected to continue to trade ahead of the market, the group said.<\/p>\n “Online is an increasingly important channel for the group and we continue to invest in this growth driver,” it said.<\/p>\n In South Africa, the group reported online sales up 29. 5% for its FBH division, with strong online sales growth, up 22.3%, for food.<\/p>\n Woolworths warned that the Coronavirus is expected to impact sourcing of FBH product.<\/p>\n