JOHANNESBURG (Reuters) – South African retailer Woolworths said on Friday its profits for the 52-weeks to June 28 could plunge by as much as 70% due to the impact of the coronavirus crisis, high tax rate, and adoption of IFRS 16 accounting standards.
Woolworths said its headline earnings per share (HEPS) – the main profit measure in South Africa- would fall by between 60% and 70% compared to the 342.9 cents it reported a year earlier.
The owner of David Jones in Australia also impaired the carrying value of certain store assets, which will only negatively impact earnings per share and not HEPS.