Melbourne, June 16, 2026, 08:08 AEST
- Coles Group closed 2.1% lower at A$23.51 on Monday. ASX 200 finished up for the session.
- Supermarket sales are still rising. Liquor is weak, and suppliers keep raising costs. Legal risks remain in focus.
- Coles is due to report its FY26 result on August 25, which is its next big event.
Coles Group Ltd. closed down 2.1% at A$23.51 on Monday, losing A$0.50. Coles shares moved between A$23.21 and A$23.96 during the session, company data showed. The stock trailed the ASX 200, which added 110 points, or 1.3%, to end at 8,914 as traders reacted to talk of a U.S.-Iran peace deal and weaker oil prices. Coles Group
Coles has a reputation as a defensive option in consumer staples, a supermarket stock with steady returns and reliable demand. But on Monday, the market turned to cyclicals like materials and banks, putting Coles among the worst performers in Investing.com’s consumer-staples sector. Woolworths also fell. Investors pick these stocks when they expect better profits, higher dividends, or improved value. The stocks can fall if the outlook softens, costs move up, or if cash shifts to faster-moving sectors. Investing
Coles’ supermarkets are still the main reason for the bulls to stick with the stock. Third-quarter numbers showed group sales at A$10.70 billion, a 3.1% rise. Supermarkets revenue hit A$9.78 billion, up 4.0%. Comparable Supermarkets sales gained 3.6%—that figure tracks stores and online against last year. Online sales pushed higher again, with eCommerce rising 24.8%. Online is now 13.6% of all sales. “We know value and availability will be important to our customers over the months ahead,” CEO Leah Weckert said, flagging pressure on household budgets.
Coles trades close to its 52-week high at A$24.28, according to Google Finance. Its P/E is 31.09, which is elevated. That doesn’t leave much of a cushion if Coles slips. Analyst targets are clustered here. Google Finance posts an average estimate of A$23.93 from 11 analysts; Investing.com’s average from 16 analysts is even lower at A$23.26. Coles looks expensive now and the upside appears limited. Google
Coles said suppliers are pushing for extra cost-price hikes as it deals with higher fuel, freight, and packaging bills. The company flagged the increases in its third-quarter outlook. Liquor sales dropped 3.9% in the quarter, and comparable sales were down 4.3%. The ACCC, in another announcement, said the Federal Court found Coles had made false or misleading “Down Down” price discount claims. Penalties and other orders are still to be decided. Investors now have to deal with rising costs and added legal risks.
Coles will drop its FY26 results on August 25. The market is watching for signs that sales growth is coming off higher volumes, and whether margins are holding thanks to automation and supply chain investments. There’s also focus on how liquor is tracking. Right now, Coles is trading as a straight defensive—steady income, supermarket reliability, but little value upside. Earnings could take a hit if costs move up, fines go higher, or shoppers pull back. Coles Group
