Woolworths has also backed away from its forecast that the home improvement business would break even during 2016. “We are disappointed we will not reach this guidance,” said chief executive Grant O’Brien. “However, we were right to set challenging targets for the business and will continue to set stringent internal hurdles for the Home Improvement business,” he said. “We remain confident that the Home Improvement business will be a material profit contributor for Woolworths and will deliver an acceptable return on investment.
In a trading update on Tuesday, Woolworths said the home improvement business lost $169 million in the 12 months ended June 30, exceeding losses of $138. 9 million in 2013.
Woolworths has put the brakes on its loss-making home improvement business after revealing that losses in 2014 had exceeded previous guidance and conceding that the business would not break even in 2016 as planned.
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