Why did the Woolworths (ASX:WOW) share price have such a great month in November?

Woolworths’ shares WOWed the market last month…
The post Why did the Woolworths (ASX:WOW) share price have such a great month in November? appeared first on The Motley Fool Australia. –

November was a quiet month for Woolworths Group Ltd (ASX: WOW), although its share price managed to clock up an extra 7.2%.

Over the course of the month, Woolworths’ stock grew from $38.08 at its final close of October to finish November trading at $40.82.

For context, the S&P/ASX 200 Index (ASX: XJO) slipped 0.92% over the same period.

There wasn’t a lick of price-sensitive news from the supermarket giant last month. However, there were a few factors that might have boosted its shares’ value.

A month of gains for the Woolworths share price

The first happening that likely impacted the Woolworths share price in November actually occurred in late October.

Then, the company released its earnings for the first quarter of financial year 2022.

Woolworths reported its supermarket leg had boomed during lockdowns affecting much of Australia and New Zealand over the 3 months ended 30 September.

Though, its Big W business saw sales tumble 18% year-on-year.

The company’s CEO Brad Banducci said the period was the most challenging COVID-19-impacted quarter so far for the company.

Over the 3 days following the release of its results on 27 October, the Woolworths share price tumbled 5.9%. Thus, it started November in a dip. That was probably favourable to the stock’s performance last month.

The supermarket also made a few moves towards becoming a ‘greener’ business in November.

It launched a BYO container program in all its Tasmanian stores and one Queensland store.

Customers of those stores can now bring their own storage solutions for products from Woolworths’ deli, meat, and seafood counters, avoiding the single-use plastic containers and wrappings dispensed by the supermarket.

The launch followed a single store trial in 2020 and more stores will follow suit in New South Wales and Victoria next year.

Woolworths also ditched single-use plastic cutlery, cups, bowls, and plates from its shelves last month.

As of the end of November, the Woolworths share price was 20.45% higher than it was at the start of 2021.

It has since dipped 0.5% amid its takeover bid for Australian Pharmaceutical Industries Ltd (ASX: API).

The post Why did the Woolworths (ASX:WOW) share price have such a great month in November? appeared first on The Motley Fool Australia.

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More reading

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Can Wesfarmers (ASX:WES) win the battle to take over API?

ASX 200 (ASX:XJO) midday update: Afterpay sinks, Woolworths bids for API

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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