Wesfarmers shares tumble as retailer warns of uneven consumer spending despite profit beat
Australia's Wesfarmers posted a record profit but warned of uneven spending. Shares fell as investors focused on slowing sales and rising living costs.
Insights:
Wesfarmers Limited reported a forecast-beating interim net profit of A$1.6 billion on Thursday, but a warning regarding slower sales growth in the second half of the year triggered a sharp sell-off in its shares. The company, which is the largest non-food retailer in AU 
AU, saw its stock price decline by as much as 6.1% in a single day as investors reacted to signs of uneven consumer spending.
AU, saw its stock price decline by as much as 6.1% in a single day as investors reacted to signs of uneven consumer spending.Despite the profit beat, the warning that second-half sales growth missed expectations has weighed heavily on investor sentiment and the group's earnings outlook. Managing Director Rob Scott oversaw a period where the company's major retail divisions, including Bunnings and Kmart, faced a shifting economic landscape. The results also included contributions from the Wesfarmers CEF (chemicals, energy and fertilisers) division, though the focus remained on the retail segments.
