Wesfarmers (WFAFY)

What Moves the Stock

1. 01Bunnings comparable store sales growth and market share gains in trade segment (currently ~15% of sales, targeting 20%)
2. 02Australian residential construction activity and housing turnover driving renovation spending and building materials demand
3. 03Kmart gross margin expansion through private label mix shift and supply chain efficiency gains
4. 04Capital allocation decisions including M&A activity, dividend policy (historically 70-80% payout ratio), and share buybacks
5. 05Australian consumer confidence and household discretionary spending trends given 70%+ revenue exposure to Australian retail
6. 06Bunnings home improvement retail (~45-50% of revenue): DIY, building materials, trade supplies across 380+ stores
7. 07Kmart discount department stores (~20-25% of revenue): apparel, homewares, general merchandise
8. 08Chemicals, Energy & Fertilizers (~15-20% of revenue): ammonia, ammonium nitrate, industrial chemicals, LPG distribution

WFAFY Chart

My Notes

• value/dividend - Attracts income-focused investors seeking exposure to Australian consumer economy with 3.5% dividend yield and franking…
• Rising interest rates negatively impact the business through multiple channels: (1) reduced housing affordability suppresses residential…
• Watch on earnings: Australian housing turnover and renovation spending trends (ABS dwelling transfers and building approvals data), Bunnings average transaction value and trade customer penetration rate (target 20% of sales by 2028), Australian consumer confidence index and retail sales ex-auto growth rates.