By Mike Cherney

SYDNEY--Australian grocer Woolworths Group Ltd. said fiscal first-quarter sales rose, driven by a strong performance in its Australian food division during local lockdowns, but warned that the outlook remained uncertain as restrictions ease.

Woolworths said group sales were about 16.1 billion Australian dollars (US$12 billion) in the fiscal first quarter, which ended on Oct. 3. That's a rise of nearly 8% compared to the same period last year on a continuing-operations basis, which excludes recently spun-out drinks business Endeavour Group.

Sales in the company's main Australian food division rose nearly 4% to about A$12.3 billion, as lockdowns in New South Wales and Victoria states forced consumers to spend more time at home. Trading restrictions, however, impacted its discount department store Big W, in which sales fell more than 17% in the quarter to A$920 million.

New Zealand food sales rose 13% in Australian dollars to A$1.9 billion.

Looking ahead, Woolworths said October sales to date had slowed in Australian food given that lockdowns are ending. But Big W sales trends have improved as Sydney stores reopen, and Woolworths said that Big W's performance for the year would be even more dependent on Christmas trading.

The company said its focus now is on the holiday season.

"While the outlook remains uncertain, and there are likely to be challenges in the weeks ahead, we are excited about helping our customers celebrate a much-needed festive season," said Chief Executive Brad Banducci.

Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

10-26-21 1810ET