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MELBOURNE - Woolworths Ltd, Australia's largest retailer and New Zealand's second largest, said today its second quarter sales rose 11.5 per cent as its market share increased, and it maintained its sales outlook for the year.
Shares in Woolworths added 0.9 per cent to A$23.86 ($27.04) in early trading, having climbed 2.5 per cent on Tuesday on hopes of strong sales.
"The December trading period was solid and in line with expectations," chief executive Michael Luscombe said in a statement.
Woolworths posted sales of A$11.35 billion ($8.8 billion) for the 13 weeks to Dec. 31, from A$10.18 billion a year ago. For the first half, sales rose 15.9 per cent to A$22.09 billion.
Woolworths said total second quarter Australian food and liquor sales rose 8.9 per cent to A$7.29 billion, while comparable store sales rose 6.4 per cent in the quarter.
Woolworths bought Progressive Enterprises -- owner of Countdown, Woolworths NZ and Foodtown -- in November 2005 for $2.6 billion.
The company said it maintained its sales outlook for the full year. Last year Woolworths forecast overall group sales growth of 8-12 per cent in fiscal 2007 and said it expected net profit growth of 16-21 per cent.
"Provided current retail trading patterns and the present business, competitive and economic climate continue, we expect sales from continuing operations for the full year to grow in the region of 8 per cent to 12 per cent," Luscombe said.
Shares in Woolworths, which has been increasing market share at the expense of main competitor Coles Group , have gained 33 per cent over the past year, while the broader market has climbed 18 per cent.
Earlier this month, Woolworths applied for clearance with the New Zealand regulator to make a takeover bid for retailer The Warehouse Group Ltd , in which it already has a 10 per cent stake. ($1A$1.29)
- REUTERS
