South African retail group Woolworths Holdings delivered improved interim earnings after robust festive-season trading and solid Black Friday demand lifted performance, particularly in its premium food division.

For the 26 weeks ended 28 December 2025, headline earnings per share increased by 9.6% to 167.4 cents, up from 152.8 cents a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3.2% to R4.6 billion (about $277.3 million).

The company attributed the results to sustained momentum in its food business, which continued to grow faster than the broader market, as well as better trading in its apparel segment following efforts to reposition and refresh its fashion offering.

In a statement accompanying the results, the group said its interim performance demonstrates steady advancement in key strategic initiatives, highlighting a recovery in clothing and ongoing strength in food sales.

The improvement came despite difficult conditions in both of its main markets, South Africa and Australia. The retailer noted that its Australian fashion operations are navigating an intensely competitive environment characterised by heavy discounting.

Group turnover and concession sales climbed 5.4% to R42.5 billion ($2.56 billion), representing growth of 6.1% on a constant-currency basis. All business units recorded positive sales growth during the period.

However, gross profit margins remained under strain. Woolworths pointed to several contributing factors, including continued long-term capacity investments, faster growth in lower-margin categories and channels such as online sales, and increased promotional activity to reduce surplus fashion inventory.

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