Wesfarmers shares fluctuate amid sales updates and analyst upgrade

Wesfarmers has experienced mixed market activity following recent financial updates. Barrenjoey upgraded the company from Neutral to Overweight, setting a price target of 89.00 AUD, which represents a significant premium over its recent ASX trading price of 78.83 AUD.

However, the company's share price saw a 4% decline following a FY27 sales update. The company reported that while its WesCEF division showed strong operating performance, there has been a moderation in retail demand. Factors such as elevated inflation and higher interest rates continue to impact consumer and business budgets.

Specific divisional performance noted that Bunnings Group saw moderated sales growth due to lower sales in seasonal and commercial categories. Kmart Group's growth remained in line with previous periods, supported by its Anko product range, while Officeworks' sales growth was also consistent with the second half of FY26. The company's quarterly revenue reached 23.00 billion AUD, up 3.88% from the previous year, despite a decrease in net profit to 1.27 billion AUD.