WOW Woolworths Group Limited

   By Robb M. Stewart 
 

MELBOURNE--Woolworths Ltd. (WOW.AU), Australia's biggest retailer by sales, said its home-improvement business had recorded a steeper-than-expected annual loss.

The company said it would book an operating loss at the division of 139 million Australian dollars (US$128 million) in the year to June 30, 2013, compared with a forecast loss of A$81 million. The home-improvement business, created in 2010, is a joint venture with U.S.-based Lowe's Cos (LOW).

Separately, Woolworths tweaked its overall annual earnings guidance before one-time items to growth of between 5% and 6%, narrowing an earlier range of 4%-6%.

Write to Robb M. Stewart at robb.stewart@wsj.com

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