Wesfarmers, Australia’s largest non-food retailer, reported a net profit of A$2.65 billion for the year ended June 30, up 3.8% from the previous year. CEO Rob Scott credited strong performances at Bunnings and Kmart for the positive results. Consumer demand is improving due to lower inflation and interest rates.

Earnings before tax for Kmart increased by 9.2% to A$1.1 billion, with growth attributed to higher customer numbers and transactions. Consumers are responding positively to the in-house brand, Anko, and showing interest in premium product offerings. Bunnings saw a 3.8% rise in earnings before tax, driven by strong demand for home repair products.

Despite geopolitical risks and U.S. tariffs, Wesfarmers remains confident in its ability to adapt. The Reserve Bank of Australia cut interest rates three times this year, providing relief for consumers. The company proposed a capital return of A$1.7 billion, subject to shareholder approval, and raised its final dividend to A$1.11 per share fully-franked.

Shares in Wesfarmers have risen by more than 28% this year. The company announced the appointment of former BHP Group Chairman Ken MacKenzie as its chairman, effective in June 2026. The positive financial results reflect a trend of improving consumer confidence and spending.

Read more at Yahoo Finance: Wesfarmers says Australian consumers starting to spend again, profit rises