Woolworths downbeat on consumer outlook

Posted by Josette Dunn on 3rd May 2010

Woolworths Ltd lowered its full-year sales outlook last friday in the face of food deflation and weakening consumer sentiment, despite posting a 4.7% increase in third-quarter sales.For the three months to 4 April, Woolworths said total sales increased to A$12.91bn, up from $12.33bn last year. Excluding fuel, sales gained 3.8%, the company added.

The group reiterated its full-year guidance for profit growth in a range of 8-11%.

However, Woolworths said that food deflation and the cycling of last year’s government economic stimulus package would dent sales growth. Woolworths lowered its revenue target from upper single digit growth to a 3-6% range.

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