The retail giant warned today that net profits for the half could fall by as much as 35%. Invast Australia chief market analyst Peter Esho said the announcement came as no surprise.
"Woolworths has been on a downward spiral for a while now," he said.
Esho pointed to a note he released to Invast clients earlier in the month saying he had been growing "more and more uncomfortable" about the company's prospects.
"Today’s downgrade validates my points. I now see Woolworths following a similar fate to BHP. Many analysts are pushing the agenda to sell the home improvement business and BIG W to recycle cash back into food and liquor. That’s a good argument but one that is around three years old. It will probably take a further two years to execute. In the world of global business, if you aren’t running hard enough, you fall behind very quickly," Esho said.
The chief market analyst at a brokerage firm has claimed Woolworths is on a "downward spiral" following today's profit warning.