JSE: WHL Share Price Attempts Trend Reversal as Woolworths Wins Hearts with Marathon Donation
Woolworths earned public praise this week for swiftly donating food from the cancelled Cape Town Marathon, but behind the goodwill gesture..
Quick overview
- Woolworths received praise for quickly donating food from the cancelled Cape Town Marathon, redistributing over 26,000 bananas and other items to 18 charities.
- Despite positive public perception, Woolworths faces challenges with falling earnings and weak consumer sentiment in Australia and South Africa.
- The company's latest financial results show a 23.9% decline in headline earnings per share, highlighting pressures from competitive pricing and cost inflation.
- Woolworths is expanding its premium beauty offerings into Kenya, aiming to capture the growing demand for luxury products in Africa.
Woolworths earned public praise this week for swiftly donating food from the cancelled Cape Town Marathon, but behind the goodwill gesture, the retailer continues to grapple with falling earnings, margin strain, and subdued consumer sentiment.
Swift Action After Marathon Cancellation
When the 2025 Sanlam Cape Town Marathon was cancelled in the early hours of Sunday morning due to dangerously high winds, Woolworths — the event’s official food sponsor — acted quickly to prevent massive food waste.
The retailer had prepared to feed over 24,000 runners at the halfway mark and finish line. Within hours of the cancellation, Woolworths’ logistics teams coordinated the redistribution of fresh produce to 18 charities across Cape Town, ensuring that communities in need benefited instead.
By 10 a.m., all the food had been collected and delivered, including 26,000 bananas, 20,000 clemengolds, 280 kilograms of potatoes, 10 kilograms of dried fruit, 5,000 apples, 4,800 dates, 1,800 sandwiches, and 600 hot cross buns.
The gesture was widely praised as an example of corporate responsibility and social responsiveness — a rare bright spot in an otherwise challenging year for the retail group.
Mixed Progress Amid Persistent Headwinds
Despite its positive public image and consistent sales growth, Woolworths Holdings Ltd. continues to face headwinds from shrinking profit margins, weak discretionary demand, and low consumer confidence in both Australia and South Africa.
The company’s latest financial results show that even as revenue rises, profitability continues to erode. Its food and digital divisions remain standout performers, but these gains are being offset by weakness in the fashion and Australian segments, where discounting and currency pressures have hurt margins.
Share Price Reaction and Technical Picture
Technical indicators show tentative support below R50, but meaningful resistance remains at R56–R60, where moving averages on higher timeframes still cap upside potential. Investors remain cautious, awaiting clear signs of earnings recovery before re-entering aggressively.
This month’s movement reflects broader certainty among investors, who have watched the stock lose significant value since its 2015 peak above R108 and it seems like investors are attempting a trend reversal now, after WHLJ share price broke above the 200 daily SMA (purple) which was acting as support on the daily timeframe chart.
WHLJ Chart Daily – Breaking the 20 SMA on the Daily Chart 
Woolworths’ stock (JSE: WHL) remains far below its historical highs. After peaking at R108 in 2015, the share has lost more than half its value, closing Monday at R55.11, despite a 3.77% daily gain and a 5.5% October rebound.
WHLJ Chart Weekly – Testing the 50 SMA
But on the weekly chart buyers are facing the 50 SMA (yellow) as resistance at R56 and then the other moving averages at R60, so they have to push the price above this moving average for the larger trend to turn bullish.
WHLJ Chart Monthly – Rebounding Off Support at the 200 SMA
On the monthly chart, the 200 SMA (purple) held as support for many months in 2025 and we’re seeing a rebound in October, but buyers have to push above the 50 monthly SMA (yellow) at R61.
Operational Performance and Expansion
Seeking to broaden its footprint, Woolworths is expanding its premium beauty offering into Kenya, after strong category growth in South Africa. Stores in Nairobi now carry Fenty Beauty, Chanel, Estée Lauder, and the retailer’s own WBeauty line.
CEO Roy Bagattini said beauty sales have doubled in two years to over R1 billion (US$58 million), with expectations to double again. The move builds on earlier regional expansions in Namibia and Botswana, positioning the brand to capture Africa’s growing appetite for luxury beauty products.
Financial Results: Growth Overshadowed by Earnings Decline
In its FY2025 interim report, Woolworths reported turnover and concession sales up 6.8% year-over-year to R81 billion, but the numbers masked a deeper earnings slump:
- Headline earnings per share (HEPS): Down 23.9% to 268.1 cents.
- Final dividend: Down 31.1% to 81 cents per share.
- Full-year dividend: Down 29.2% to 188 cents.
The declines underline the impact of consumer fatigue, competitive pressures, and cost inflation—especially within Australia’s Country Road Group, where currency weakness and promotional pricing dragged profits lower.
Segment Highlights
Food Division
- Turnover & Concession Sales: +11%
- Online Food Sales: +32.9%
- Woolies Dash (on-demand platform): +41.6%
Fashion, Beauty & Home (FBH)
- Turnover & Concession Sales: +4.7%
- Online Sales: +22.8%
Australia – Country Road Group
- Gross Profit Margin: Down to 56.4%
- Key Pressures: Heavier discounting, higher import costs, and a weaker AUD
Earnings Pressure and Market Backdrop
While inflation is easing and rates are stabilizing, economic sentiment in both of Woolworths’ key markets remains fragile. High household costs continue to weigh on spending, while global trade tensions and tariff risks add further uncertainty.
The company’s dividend cut and soft earnings guidance signal that management is prioritizing stability over aggressive expansion in the near term. Analysts warn that even with operational efficiency drives, a meaningful profit turnaround will depend on improved consumer demand and disciplined cost control.
Strategic Focus and Outlook
CEO Roy Bagattini emphasized that the company’s premium food and beauty divisions will anchor long-term resilience. Management’s strategy centers on digital expansion, cost optimization, and stabilizing its Australian operations, which remain critical to its future performance.
Yet despite these efforts, the group’s recovery remains tentative. Woolworths continues to command strong brand loyalty, but without stronger margins and earnings momentum, investor confidence may remain subdued.
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