SYDNEY, June 24, 2026, 04:06 AEST
Wesfarmers ended Tuesday up 0.34% at A$86.44, beating the S&P/ASX 200, which slipped 0.33%. Consumer-discretionary names rose 0.56%, with the sector leading gains even as most of the market traded lower.
Wesfarmers shares are up about 8.1% from the June 9 close. The company didn’t release any new market announcement on Tuesday. Traders pointed to sector strength and follow-through buying after this month’s strategy briefing as reasons, not a new company update.
Wesfarmers shares moved in a range of A$85.66 to A$86.81, with volume around 1.86 million. The company’s market cap was close to A$98.1 billion. The stock traded at about 32 times earnings, showing the price investors are paying per dollar of profit. The 52-week high sits at A$95.18.
Wesfarmers’ plan to shift Blackwoods and Workwear Group under Bunnings starting July 1 is a key part of its pitch to investors. Chief Financial Officer Anthony Gianotti described the move as “a significant opportunity to leverage greater scale and capabilities.” Bunnings Managing Director Mike Schneider said the switch should mean “more choice, better product availability and an enhanced customer experience” for customers. Wesfarmers isn’t expecting any material one-off costs from the transition.
Metcash reported new numbers showing mixed performance in hardware. Hardware & Tools revenue was up 4.3% at A$3.7 billion for the year to April, but EBIT dropped 6.3% to A$177.3 million. Sales climbed 5.8% in the first seven weeks of the new financial year. CEO Doug Jones said there was “improved momentum in the second half across both Hardware and Tools.”
Wesfarmers started the period with good earnings momentum. Half-year net profit after tax rose 9.3% to A$1.603 billion and revenue lifted 3.1% to A$24.21 billion. Bunnings sales climbed 4%, Kmart was up 3.2%, and Officeworks added 4.7%. In February, management cautioned that interest rates, living costs and higher operating expenses might weigh on demand and margins.
But with the stock’s valuation stretched, there isn’t much space for bad news. Analyst estimates from Investing.com are neutral, with an average 12-month target at A$75.13—13% under where shares finished on Tuesday. The top target, A$85, is still below market. Any hit to household spending, softer trade, or slower integration savings at Bunnings could spark a bigger pullback.
Wesfarmers will hand down full-year numbers on August 27. Investors are watching to see if gains at Bunnings and Kmart, cost cuts, and the lithium business can keep backing the latest move in the stock.
