SYDNEY, June 26, 2026, 04:06 (AEST)
- Wesfarmers finished Thursday at A$89.47, gaining 2.52%. The S&P/ASX 200 slipped 0.68%.
- Market value climbed to roughly A$101.5 billion. The price landed 5.3% above the top estimate of A$85 in a range from 13 analysts.
- Household spending in Australia climbed 1.3% in May, according to the Australian Bureau of Statistics. Wesfarmers did not release any new company updates after its June 10 strategy briefing.
Wesfarmers jumped A$2.20 to close at A$89.47 on Thursday, outpacing the S&P/ASX 200 by 3.2 percentage points. The benchmark slipped 0.68%. The stock has climbed 4.7% this week.
The closing price finished 5.3% over the A$85 high from one analyst target set, and 18.2% above the A$75.68 average from another set with an underweight consensus.
That leaves earnings upgrades carrying the load. The shares are trading above the stated target range, so if profit forecasts stay flat, there won’t be much valuation support if sales or margins slip.
Retail stocks moved up Thursday after new demand numbers landed. IG market analyst Tony Sycamore said household spending came in with a “much stronger rebound than anticipated” and that demand was “hardier than feared for now.” IG
Category trends were mixed. Clothing and footwear spending was up 2.7%, but the Australian Bureau of Statistics said clearance sales and end-of-financial-year discounts drove the gain. Furnishings and household equipment spending increased 0.8%. All figures are at current prices.
Mixed picture for Wesfarmers. Discounting could help drive sales at Kmart and other retail arms, but it puts pressure on margins.
Wesfarmers shares rallied Thursday without a fresh filing. The investor centre still shows the June strategy briefing as the most recent update, so retail buying after the consumer data looks like the main driver.
Wesfarmers shares are up 11.9% since the June 9 close before its strategy briefing, climbing from A$79.99 to A$89.47. The change in price and Thursday’s market capitalisation add up to about A$10.8 billion more in equity value.
The broader consumer-discretionary sector was trading around 20% up from its May 12 low by Thursday afternoon. It’s still down about 16% from its August 2025 high. Wesfarmers bounced back 25.6% off its May 18 low at A$71.26.
Wesfarmers posted a 9.3% jump in net profit to A$1.6 billion at its February half-year results. Bunnings EBIT was up 5.5%, with Kmart earnings rising 7%. CEO Rob Scott said inflation is “one of the major challenges for the Australian economy.” Early second-half sales growth in both divisions came in below what the market was looking for. Reuters
Retailers got mixed news from Thursday’s labour numbers. Jobs were up 40,300, and unemployment dropped to 4.4%. Still, the Reserve Bank of Australia’s cash rate stays at 4.35%. Solid demand may help sales but also keeps rates elevated.
Wesfarmers is set to report full-year results on August 27, with the company ready to give its latest readout on sales and margins at both Bunnings and Kmart.
