Core Viewpoint - Wesfarmers' shares declined significantly due to a weaker-than-expected start to the second half of the fiscal year, as high living costs continue to impact consumer spending [1] Financial Performance - The company reported a half-year net profit after tax of A$1.60 billion, exceeding the Visible Alpha consensus estimate of A$1.56 billion and up from A$1.47 billion the previous year [1] - Bunnings recorded earnings growth of 5% to A$1.39 billion (approximately $978.42 million), while Kmart saw over 6% growth to A$683 million [1] - WesCEF, which includes chemicals, energy, fertilizer, and Covalent Lithium, achieved an 18% growth in first-half earnings [1] Market Expectations - Early second-half trading showed sales growth at Bunnings tracking its first-half growth of about 4%, while Kmart was ahead of its 3.2% growth from the previous six months [1] - The company fell short of market expectations for second-half growth in both Bunnings and Kmart [1] Consumer Sentiment - Australian households are tightening their spending due to persistent inflation and higher operating costs, affecting retailers' earnings despite steady traffic across key divisions [1] - Wesfarmers noted that cost-of-living pressures are impacting many households unevenly, with recent interest rate rises and inflation uncertainty affecting consumer sentiment [1] Dividend Announcement - The company declared an interim dividend of 102 Australian cents per share, an increase from 95 Australian cents per share last year [1]