Woolworths Holdings Ltd. continues to face headwinds in its turnaround efforts for its clothing unit, as consumer spending remains under pressure in both South Africa and Australia.

The Cape Town–based retailer reported a 5.8% decline in net income, reaching 2.44 billion rand (approximately $138 million) for the year ended June 30. The company, which has long struggled to find the right product mix in its home market, cited restructuring disruptions and an economic slowdown in Australia as additional drags on earnings.

The group’s stock fell by as much as 4.4% in early trading, marking it as the largest decliner on the FTSE/JSE Africa All Shares Index at 9:27 a.m. in Johannesburg.

Despite the challenging landscape, Woolworths’ Chief Executive Officer Roy Bagattini noted improvements in

See Full Page