SYDNEY, March 13, 2026, 10:52 AEDT
Wesfarmers shares pushed up roughly 1.3% to A$76.26 during Friday morning trade, standing apart from a weaker Australian market while the ASX 200 dipped about 0.35% early on. That comes after a Thursday close at A$75.29, with the stock finishing down 0.69%.
That’s significant: Wesfarmers is being looked at more through the prism of valuation than pure retail these days. Schroders’ Kellie Wood, writing Thursday, pointed out Wesfarmers bonds are yielding around 5.4%—well ahead of the stock’s 3.7% dividend. Woolworths shows a similar spread. Wood’s take: “investors can now ‘get better yields in high-quality fixed income corporate bonds.’” Livewire Markets
The debate has lingered over the stock since February. Wesfarmers posted a half-year net profit after tax of A$1.603 billion, a 9.3% rise, with Bunnings, Kmart Group, and WesCEF providing most of the lift. Still, shares slid up to 6.1% on the day of the results, as investors zeroed in on weaker second-half trading.
Management isn’t sugarcoating the situation. During the half-year results, Managing Director Rob Scott pointed to the latest rate hike and lingering questions about inflation and interest rates, calling both “affecting consumer sentiment.” Wesfarmers, meanwhile, bumped up the interim dividend to 102 Australian cents, fully franked, with payment set for March 31. The tax credits attached benefit local investors. Wesfarmers
Friday’s uptick offered only limited relief—shares are still trading roughly 14.6% under their Feb. 18 finish of A$89.26, despite the rebound.
Even so, investors aren’t left empty-handed. Wesfarmers reported its retail units performed solidly in the first six weeks of the new half. Bunnings and Officeworks posted sales growth that basically matched what they saw in the first half.
Still, macro risks linger. ASX 200 futures slipped 28 points in premarket trading Friday, while WTI crude finished above US$95 a barrel—a level not seen since August 2022. That combo threatens to keep inflation stubborn and put fresh pressure on consumers’ wallets.
Wesfarmers trades like a premium retailer, though investors still aren’t fully convinced by its valuation. Shares hover near A$76, which puts the stock at approximately 27.9 times earnings—a number that’s left them trailing February highs.
