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Wesfarmers Meets Fiscal 2026 Estimates, Raises Dividend

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Wesfarmers Meets Fiscal 2026 Estimates, Raises Dividend

Wesfarmers (ASX:WES) fiscal 2026 results met analyst expectations, with the retailer reporting strong earnings contributions from segments such as Bunnings, Kmart and WesCEF.

The company reported AU$2.534 in earnings per basic share excluding significant items, up from AU$2.34 a year ago and broadly in line with analysts' expectations of AU$2.50 as polled by FactSet.

Revenue rose to AU$47.27 billion from AU$45.7 billion a year ago, also meeting the AU$47.21 billion estimate from analysts polled by FactSet.

"Bunnings and Kmart Group's everyday low prices continued to drive sales and earnings growth. Disciplined execution of strategies helped offset cost pressures and delivered operating leverage across both businesses," said Managing Director Rob Scott.

Bunnings' solid trading performance reflected the strength and resilience of its offer and ability to deliver growth through a range of market conditions," Scott added.

The company also bumped up its dividend to AU$1.20 per share from AU$1.11 a year ago as a result of the increase in underlying profit.

The company said that in the first seven weeks of fiscal 2027, Bunnings recorded slightly stronger sales growth than the second half of fiscal 2026, assisted by unseasonably dry weather in July, while Kmart Group's sales growth was in line with the prior half and Officeworks maintained positive but slightly softer growth.

The company expects borrowing costs to be higher in fiscal 2027, reflecting higher levels of net debt, increased capital expenditure and a higher cost of funds.

Jarden, which has a neutral rating with a AU$79.30 price target on Wesfarmers, said that the outlook commentary suggests a "solid" start to fiscal 2027, with Bunnings higher, Kmart in line, and Officeworks slightly softer than expected.

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