Kmart employees in Seattle opened a box that was mysteriously delivered to the store and contained 10 pounds of marijuana.
Kmart employees in Seattle opened a box that was mysteriously delivered to the store and contained 10 pounds of marijuana.

Wesfarmers, the parent company of Kmart, Bunnings Warehouse, Officeworks and Priceline, has turned a profit of AU$2.6 billion for the year, despite economic challenges.

The company saw a 3.7% growth in its profit from AU$2.46 billion to AU$2.56 billion, aligning with the analysts' expectations. The company's revenue also grew by 1.5%, reaching AU$44.19 billion.

Low prices and broad customer appeal of their products were the unique selling points of Wesfarmers that helped them overcome the financial headwinds. Kmart's Anko brand was particularly hailed for its focus on value-driven offerings that helped attract cost-conscious customers, News.co.au reported.

Wesfarmers' diversified portfolio also reportedly helped offset any losses. Although the chemicals, energy, and fertilizers division experienced a downturn, the success of Kmart, Bunnings, and Officeworks maintained the balance, AAP reported.

However, despite a strong overall financial performance in 2024, challenging economic conditions, particularly in the home-building sector, has begun to slow sales growth at Bunnings.

According to Managing Director Robb Scott, Wesfarmers had a difficult year, with challenges from rising corporate expenses, a slowdown in residential development, and notable volatility in critical commodities.

"There were numerous headwinds to navigate with cost-of-living pressures, rising costs of doing business, subdued activity in residential construction and significant volatility in key commodities," Scott said. "Wesfarmers' businesses executed well, with the retail divisions responding effectively as households increasingly shifted to value during the year."

"Sales and earnings growth in the retail divisions was supported by everyday low price offerings and products with broad customer appeal," Scott added.

Kmart group's earnings increased by 24.6%, reaching AU$958 million, with total sales rising by 6.3%. Bunnings reported a 0.9% gain in earnings, totaling $2.25 billion, while total store sales increased by 2.6%.