Wesfarmers Limited (WES)

All research reports and stock updates for Wesfarmers Limited.

Stock Updates

Consumer Discretionary
Wesfarmers Limited (WES)

Mopping up

Consumer Discretionary
Wesfarmers Limited (WES)

Cost watch

Consumer Discretionary
Wesfarmers Limited (WES)

WES - Stock Update

Research Reports

It ain't broke
Consumer Discretionary
Wesfarmers Limited (WES)

It ain't broke

Change of recommendation. Our expectation of slowing sales growth at Bunnings is playing out, but earnings are barely being dented.

Bunkering down
Consumer Discretionary
Wesfarmers Limited (WES)

Bunkering down

The annual Wesfarmers Strategy Day presented a resilient company able to withstand a softening consumer spending environment. 

Bunnings hits a snag
Consumer Discretionary
Wesfarmers Limited (WES)

Bunnings hits a snag

We anticipate a slowing sales profile and rising costs will shrink margins and earnings for Wesfarmers in FY23f.

Catching up online with OnePass
Consumer Discretionary
Wesfarmers Limited (WES)

Catching up online with OnePass

We recently downgraded our recommendation to Sell on the premise of flat sales at Bunnings for the next three years. The company strategy day did not change our thinking and revealed a cautious approach to group online capability.

No sizzle
Consumer Discretionary
Wesfarmers Limited (WES)

No sizzle

Bunnings dominates Wesfarmers’ earnings, even more so following the exit from Coles, but the homewares powerhouse is out of puff.

Out of steam
Consumer Discretionary
Wesfarmers Limited (WES)

Out of steam

Gravity has got hold of Wesfarmers’ earnings after a stellar FY21. The interim result was pre-flagged in January, particularly warning on Kmart, but the earnings normalisation has spread across other divisions as well.

Kmart KO'd by COVID
Consumer Discretionary
Wesfarmers Limited (WES)

Kmart KO'd by COVID

Wesfarmers’ earnings update signalled the toll that COVID-19 has taken on Kmart as sales have stuttered and costs have soared. The retail-centric WES continues to muscle up its group infrastructure for future online trading, but with rising supply chain costs weighing in, lower margins are likely to be entrenched for Kmart.

Retail fatigue
Consumer Discretionary
Wesfarmers Limited (WES)

Retail fatigue

Wesfarmers’ key retail businesses – Bunnings, Kmart, Target and Officeworks – are beginning to experience some retail fatigue. These businesses have enjoyed an extended period of super-sales throughout the COVID-19 pandemic, but sales are beginning to fade and this will continue over the next 18 months in our view. WES has acquisition capacity of up to $10 billion but has been reluctant to deploy it to any great extent so far.