Wesfarmers share price faces recent decline despite strong retail earnings

Wesfarmers Ltd, a diversified Australian conglomerate, has seen its share price decline by approximately 10% since the start of 2025. Despite this recent drift, the company maintains a strong portfolio of retail and industrial brands, including Bunnings, Kmart, Officeworks, Target, and Priceline.

Bunnings Warehouse remains a primary driver of the company’s performance, contributing over 50% of its operating profit. In the 2026 financial year, Wesfarmers reported an underlying earnings per share growth of 8.3%, supported by a return on equity of 35.5%. The company is noted for its history of acquiring businesses, reinvesting to grow cash flow, and occasionally spinning off assets, such as the 2018 spin-off of Coles Group.

While the articles also mention Fortescue Ltd’s expansion into copper and lithium, the primary focus regarding Wesfarmers remains its ability to compound earnings and its resilience in high cost-of-living environments through its leading retail brands.