WES - Wesfarmers Limited

[divs4ever]

How come stock price dropped 5% on the day of that announcement of Coregas?
Thoughts?

well i am a little surprised by the drop , maybe i am missing something , does the sold asset diminish WES penetration into the trades supply world

OR the 'smart money ' may have decided to take some cash off the table at WES before that it had been approaching lofty valuations

 

[wsliuzx]

OR the 'smart money ' may have decided to take some cash off the table at WES before that it had been approaching lofty valuations

Coregas news was the smoke grenade

 

[farmerge]

WES No 2 pick for the yearly Comp.
The SP has improved slightly since the start of the month.
A top performing company with a good history of dividends for those that hold.
As I see it, only upwards is the way it can go.

 

[divs4ever]

WES No 2 pick for the yearly Comp.
The SP has improved slightly since the start of the month.
A top performing company with a good history of dividends for those that hold.
As I see it, only upwards is the way it can go.

only up ??

i was wondering if there is another divestment in the works ( shrinking the conglomerate a little )

i see less than average chance of a stock-split ( say 1 share becomes 5 new shares ) in WES ( at least while it stays under $100 )

but management seems to be looking for new improvements in conglomerate

( i hold WES )

 

[Dona Ferentes]

Officeworks this morning - a stream of people in and exiting with purchases. busy busy.

My artist friend was pleasantly surprised by the 'art' stuff; full range from cheap to professional quality paint and equipment.

 

[farmerge]

Officeworks this morning - a stream of people in and exiting with purchases. busy busy.

My artist friend was pleasantly surprised by the 'art' stuff; full range from cheap to professional quality paint and equipment.

@Dona Ferentes The Office Works that I visit occasionally is very well set up and seems to have a bit of everything, perhaps akin to being a mini Bunnings.

 

[Dona Ferentes]

not unexpected
.
Catch wind down and OneDigital update

Wesfarmers today announced that Catch will cease to trade as a standalone operating business in the fourth quarter of the 2025 financial year. Catch’s e-commerce fulfilment centres will be transferred to Kmart Group, while select digital capabilities developed in Catch will be transferred to Wesfarmers’ retail divisions. This will eliminate the losses associated with Catch as a standalone entity and strengthen the retail divisions’ omnichannel offers.

Wesfarmers Managing Director Rob Scott said the decision was in the best interests of shareholders and would better leverage the assets and capabilities developed within Catch.
“While Catch’s financial performance has been challenging, we have gained valuable insights and capabilities that have accelerated the Group’s digital transformation and supported the development of the OnePass membership program,” Mr Scott said.

“Since the acquisition of Catch in 2019, Wesfarmers’ retail divisions have significantly enhanced their data and digital operations, recording more than $3 billion in e-commerce sales and 220 million monthly digital interactions with customers in the 2024 financial year. Wesfarmers’ retail divisions currently represent the largest non-food, omnichannel retail group in Australia. “The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch’s financial performance and growth prospects. In this environment, the Group’s retail and health businesses, with their leading omnichannel offerings and trusted brands, are better positioned to respond as the market and customer expectations evolve. These businesses are supported by extensive store networks, leading e-commerce platforms, the Group’s shared data asset and complementary loyalty and membership programs, including OnePass. Together, these elements provide the opportunity to cost-effectively scale the Group’s customer propositions, helping create shareholder value.
“We thank the Catch team for their hard work improving the operating performance of the business and building valuable capabilities for the Group. Where possible, opportunities for redeployment within the Group will be offered to affected team members.”

 

[Dona Ferentes]

forgot the meaty bit...

One-off costs and Catch preliminary half-year earnings results
Wesfarmers expects to record one-off costs associated with the wind down and transition of Catch of between $50 million and $60 million, to be included in the results for the second half of the 2025 financial year. This amount does not include the operating losses Catch will incur from trading in the second half of the 2025 financial year. The expected one-off costs include approximately $25 million to $30 million ofnon-cash costs.

Subject to review by the Group’s auditor, Catch is expected to report an operating loss before tax of between $38 million and $40 million, for the half-year ended 31 December 2024. This does not include any of the expected one-off costs associated with the wind down and transition.

OneDigital update
OneDigital continues to accelerate the Group’s data and digital ambitions, offering customers a more rewarding omnichannel experience across the retail and health divisions, while leveraging data analytics to support each division’s growth agenda.

The OnePass membership program continues to provide members with compelling instore and online benefits and is driving higher shopping frequency and incremental sales. The Group’s shared data asset, which includes more than 12 million customer records, is enabling the Group to better understand customers, improve personalisation and identify cross-shop opportunities. Importantly, the asset is supported by continued investment in privacy, security and data governance. OneDigital will now accelerate the development of a Group retail media network. This will include an investment in shared systems, data and sales capabilities to commercialise retail media across the retail and health divisions.

In line with previous guidance, the operating loss for OneDigital (excluding Catch) is expected to be approximately $70 million for the 2025 financial year. This includes the costs associated with increased investment in the development of retail media capabilities. The benefits from the Group’s investment in OneDigital continue to be embedded in the divisional results.

 

[divs4ever]

i guess Catch was the right name ,, and Wesfarmers got caught

BUT it might be good news for Kogan

( i hold both WES and KGN )

 

[divs4ever]

i guess Catch was the right name ,, and Wesfarmers got caught

BUT it might be good news for Kogan

( i hold both WES and KGN )

apart from divesting the two troubled digital adventures .. i suppose WES might go looking for an affordable media/advertising business , there should be one or more of them still left , surely they wouldn't naive enough to chase NEC ( i hold WES and SGH[ formerly SVW ] )

 

[Dona Ferentes]

forgot the meaty bit...

One-off costs and Catch preliminary half-year earnings results

that's that, then .... digested, and now up along with the market.

 

[Dona Ferentes]

might be good news for Kogan

( i hold both WES and KGN )

ha ha Kogan, that no-moat numptie.

Try Temu and Amazon

 

[sptrawler]

ha ha Kogan, that no-moat numptie.

Try Temu and Amazon

Online middle men is a competitive space, I was surprised when WES bought them, at least they are sensible enough to get out.
I hold WES, well my wife does, apparently tax effective stratergies becomes ownership. Lol

 

[divs4ever]

Online middle men is a competitive space, I was surprised when WES bought them, at least they are sensible enough to get out.
I hold WES, well my wife does, apparently tax effective stratergies becomes ownership. Lol

looks more like a salvage effort to me , WES will cherry-pick the better staff , and incorporate some ideas into the retail arm ( and probably write off Catch as a tax loss ), doesn't look to be a bad a misstep as the UK hardware saga , was

but starting to look like they are making mistakes while trying to force growth

i sure as heck won't be rushing to add to the holding at these prices and the current 'must grow bigger mindset '

 

[divs4ever]

ha ha Kogan, that no-moat numptie.

Try Temu and Amazon

no moat , but has flexibility to improve the business when opportunities arrive

 

[Dona Ferentes]

my only lithium holding

closing in again on that $77.20 ATH