Woolworths profits nosedive

Earlier today, Woolworths announced that Group sales increased by 4% to £2.74bn, although like for like sales fell 6.6% compared to last year.

Profit from ongoing businesses before tax fell from £43.7m to £7.3m, whilst adjusted profit fell from £57.7m to £21.8m.

The Woolworths Retail Business delivered a £12.9m adjusted loss against a £17.1m profit last year. The loss was blamed on a worse than expected underlying sales performance, as like for like sales fel 6.6% for the year to 3rd February 2007.

CEO Trevor Bish-Jones said "Last year eas difficult for the Woolworths Group, particularly for the retail business. At Woolworths, our multi-channel offer has proved popular with customers who appreciate the option of being able to shop on linne, in-store or through a catalogue, as well as having access to a wider range of products.

The retail environment is likely to remain challenging in the current year. the first seven weeks of the new financial year have begun positively, but it is early days and we will continue to manage the business tightly.