Why did the Woolworths share price have such a ripper November?

The Woolworths Group Ltd (ASX: WOW) share price put on a decent performance in November. Stock in the supermarket giant gained 4.39% over the month just been.

After closing October at $33.02, the Woolworths share price had leapt to $34.47 by the end of November.

However, the consumer staples stock underperformed the broader S&P/ASX 200 Index (ASX: XJO). The index rose 6.13% last month. Meanwhile, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) gained 3.78%.

So, what helped drive the Woolworths share price higher in November? Let’s take a look.

What went right for the Woolworths share price last month?

There was only one price-sensitive release from Woolworths last month, and I dropped early in the peace.

The company revealed its first quarter sales results on 3 November, to the disappointment of the market.

The supermarket operator’s group sales lifted 1.8% over the quarter ended 2 October, coming in at around $16.4 billion.

Its Australian food segment saw sales slump 0.5% to $12.2 billion while its New Zealand food sales fell 2.5%.

Fortunately, the company’s Big W business offset the declines, posting a 30.1% increase in sales, which lifted to $1.2 billion. Its Australian business-to-business segment also outperformed, with sales rising 26% to $1.2 billion.

The Woolworths share price fell 3.5% on the back of the update.

In non-price sensitive news, the company kicked off its Christmas campaign last month.

Woolies supermarkets are said to be offering “inflation-busting value” this holiday season while competing supermarket Coles Group Ltd (ASX: COL) previously “LOCKED” certain items’ prices until the end of January.

Big W also got into the holiday spirit, giving a festive makeover to many of Australia’s ‘big things’ – a move that coincided with the launch of its Christmas campaign, Make a Little Magic.

Sadly, however, the Woolworths share price’s recent uptick hasn’t been enough to boost it back into the longer-term green. It’s still down 10% year to date and 13% over the last 12 months.

For comparison, the ASX 200 has slipped 3% in 2022 and has gained 2% over the last 12 months.

The post Why did the Woolworths share price have such a ripper November? appeared first on The Motley Fool Australia.

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More reading

• Dividends! Goldman Sachs says these ASX 200 shares are buys for income investors
• Woolworths shares: To buy or not to buy?
• Looking to buy Woolworths shares as an inflation hedge? Read this first
• Battle of the dividends: Do Woolworths shares pay more than Coles?
• Almost ready to retire? Here’s why I’d buy Coles shares for dividends

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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