Sydney, June 13, 2026, 04:08 (AEST)
- Wesfarmers finished the session at A$86.47, gaining 2.56%. The stock has now risen about 10% over five days, with the broader ASX uptrend helping boost risk sentiment.
- Investors zeroed in on Bunnings expansion, Kmart’s digital rollout, AI and productivity at Wesfarmers’ June 10 strategy briefing.
- Next up is the full-year report on August 27, with investors wanting to see if higher sales and cost cuts are boosting earnings.
Wesfarmers Limited closed Friday at A$86.47, gaining 2.56% after buyers stepped in this week. Shares in the Bunnings, Kmart and Officeworks owner pushed higher as the S&P/ASX 200 advanced almost 2% to 8,804. Broader risk appetite lifted Australian equities.
Wesfarmers shares gained as investors seemed to like the company’s more detailed growth case following its 2026 Strategy Briefing Day in Sydney. The official investor page included the June 10 strategy event and presentation, and market reports flagged management talking up productivity, artificial intelligence, digitisation, and a bigger Bunnings.
Bunnings is still the main reason WES trades at a premium. In its latest update, Bunnings said it sees an expanded addressable market worth about A$113.5 billion, including home, trade and commercial. Growth is coming from areas like pets, cleaning, home security, auto parts and workwear. That’s important for the price because a bigger market makes it easier to argue Bunnings has room to grow even if core hardware sales slow down.
Kmart is the other key part of the bull case. Kmart Group’s managing director Aleksandra Spaseska said, “We have continued to broaden and improve our ranges in areas where we see the strongest growth potential.” Ragtrader reported Kmart is using digital tools, closer supplier work and artificial intelligence to make apparel development faster. The retailer has rolled out radio-frequency identification, or RFID, tags on more than 60% of apparel purchase-order volumes. RFID, a tracking tech, is meant to help with stock accuracy and product availability. Ragtrader
Wesfarmers posted a solid set of numbers for the first half of FY2026, with revenue coming in at A$24.2 billion, up 3.1%. Net profit after tax rose 9.3% to A$1.6 billion. EBIT was A$2.49 billion, up 8.4%. Bunnings earnings increased 5.0%, Kmart Group was up 6.1%, and Wesfarmers Health saw a big jump of 35.7%. Officeworks earnings fell 21.8% after incurring transformation and restructuring costs. The overall financial setup looks positive but not without risks.
Investors are waiting on Wesfarmers’ August 27 full-year earnings, with focus on any second-half trading update, Bunnings’ margins, Kmart’s digital sales, and Officeworks’ transformation costs. The market is also watching the July 1 shift of Blackwoods and Workwear Group into Bunnings Group, which Wesfarmers says will improve customer deals, boost sales, and cut costs, though financial results for these units are set to show up in Bunnings’ first-half FY2027 numbers.
Wesfarmers bulls point to the company’s big scale, use of data, private-label push and efficiency gains to protect margins and move into new markets. On the bear side, valuation stands out: MarketScreener shows a mean analyst Hold call, a A$76.91 average target, and the last close at A$86.47 is 11.06% above that. Jarden bumped its target to A$79.30 but kept its Neutral. Right now, Wesfarmers is seen as a quality name trading as if management will keep executing, so the stock looks fully valued and more sensitive to any slip than cheap.
