Woolworths Reports Good Growth Figures

Woolworths proudly reported strong sales in the first quarter of 2006-07. Turnover for the 14 weeks to 1 October 2006 rose by 21 per cent, in spite of generally weaker consumer discretionary spending. The strongest sales growth was in the food and liquor business, helped by acquisitions and higher food prices.

This trend will be steadied though if drought conditions continue to get worse. But one thing to note is people always need to eat and Woolworths will always have consumers.

The only weaker result was for the Big W discount department store chain and consumer electronics, where growth was less than that of the June quarter.

Woolworths is still overpriced at the current level but you do pay for quality. The PE, PEG and book values are substainally overpriced but looking at future growth the company would be a good price anywhere under $20.

Good Luck investing