Woolworths share price ASX ended Tuesday’s trading session barely unchanged amid a rise in Australia’s retail sales for January 2023. The WOW stock was trading at A$36.92, slightly lower from its intraday high of A$37.32. The company has a total market cap of A$44.857 billion.
Woolworths Group Limited?
Woolworths Group Limited is an Australian retail company that operates throughout Australia, New Zealand, and India. It is the largest company in Australia by revenue and the second-largest in New Zealand. The company operates through business segments such as Australian Food, New Zealand Food, Endeavour Drinks, Big W, and Hotels.
The Australian retail company recently announced its half-year results, revealing a balanced financial performance compared to the previous year. The company’s group sales rose 4% to $33.2 billion, while EBIT jumped 18.4% on the back of a 2.5% increase in Australian Food.
The Australian grocery giant reported a 14% increase in its net profit in the last half year, coming in at A$911 million for all of its stores. Brad Banducci, Woolworths Group CEO, said that the company’s first-half results benefited from a focus on improving its customer shopping experience, as well as restoring its operation rhythm.
Woolworths share price remained slightly changed after the Australian Bureau of Statistics (ABS) posted a retail turnover increase of 1.9% in January 2023. This was an improvement from the 4% fall in December 2022. The retail sales were boosted by an increase in the popularity of Black Friday sales and growing cost of living pressures, combining to drive a change in usual consumer spending patterns.
Woolworths Share Price Outlook
Woolworths share price ASX has been under pressure for the past few days despite the company posting improved half-year results. On the daily chart, we can see that the WOW stock price has been moving sideways for the past few days. Even so, the stock has managed to remain above the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has inched lower but remains above the neutral zone.
Therefore, I expect the Woolworths stock price to rebound in the short term. If this happens, the next key resistance levels to watch will be $37.70 and $38.60. However, a move below the important support level at $35.60 will invalidate my bullish view.