Sales up but earnings take a hit.

 

Officeworks’ transformation program in on track but it’s coming at cost with full year earnings down 22 per cent to $165 million.

 

However, the retailer lifted sales by 3.7 per cent to $3.7 billion, despite a “challenging” financial year.

 

The earnings drop was largely due to $40 million in restructuring and transformation costs.

 

Wesfarmers managing director Rob Scott said the transformation program was progressing as planned, with a structurally lower cost base expected to support an improvement in Officeworks’ earnings in the current financial year.

 

Scott highlighted the performance of AI shopping assistants, including Ollie at Officeworks, which he said were generating conversion rates 2-3 times higher and increasing average order values by 20-30 per cent. 

 

Officeworks’ ‘Price Dropped’ campaign, in which it lowered prices on  around 2000 essential products, “resonated strongly” with customers amid softer consumer sentiment, driving transaction, unit and margin dollar growth

 

The retailer reported sales growth across key categories, including technology, Print & Create, stationery, art and education.

 

Sales were  impacted by weaker economic and trading conditions in 2H26, particularly in the mobiles and connect category. 

 

In the months ahead, Officeworks said it will execute targeted category expansions, including workplace facilities, smart technology and gaming.