WOOLWORTHS (UK) releases FY2006 results

Woolworths (UK) has announced preliminary results its full year results for 2006 saying that profits were down from GBP57.7 million (USD104.9 million) in the previous twelve months to GBP21.8 million (USD40.1 million) in 2006. In relation to its retail operations, the company said that like-for-like sales were down by 6.6%, while continuing retail operations generated a loss of GBP12.9 million (USD23.7 million) as against a profit of GBP17.1 million (USD31.1 million) in the previous twelve months. The company said that the disappointing performance was hit by falling sales of entertainment products and confectionery. However, Woolworths (UK) said that it had seen an improvement in the outlook for toy, stationery and clothing sales, while the home department was described as “encouraging”, and the company’s recently launched “multi-channel platform” had met with positive consumer reaction. Looking forward, Woolworths (UK)’s chief executive, Trevor Bish-Jones, felt that that the retail environment was likely to remain “challenging”.