Sydney, June 24, 2026, 06:32 (AEST)
Woolworths Group Ltd is due to pick up from A$38.74 when Australia’s cash market opens for Wednesday’s trade, after adding 19 cents, or 0.49%, on Tuesday. Shares hit a new 52-week high at A$38.80. Woolworths is up 31.3% this year.
Woolworths beat the market in a down session. The S&P/ASX 200 dropped 0.33%. Consumer staples rose 0.16% as investors moved to defensive stocks. Woolworths outpaced the index by about 0.8 percentage point.
That’s notable because Woolworths didn’t report any new guidance. The company had no ASX filings on Monday or Tuesday. Its most recent June disclosures were about unquoted securities and directors’ interests. This latest move in the stock likely follows the defensive trend and momentum from earlier.
Coles Group edged up 0.7% to A$23.86 as buyers stepped in. That points to gains across the sector, not just Woolworths.
Metcash saw its food unit EBIT climb 5.4% to A$261.8 million in fiscal 2026, though the company faced tougher competition. The large-store IGA price gap tightened to 2.1%. “The IGA network is more competitive than ever,” CEO Doug Jones said.
Metcash’s total sales are up 1.9% in the first seven weeks of fiscal 2027. Food sales rose 0.7%. Trading picked up in June after May was softer. That suggests steady demand for groceries, and the independent-store network is starting the new year with sharper pricing versus Woolworths and Coles.
Woolworths is showing a mixed performance. The retailer’s April update showed group sales of A$18.10 billion for the third quarter, with Australian Food up about 6%. But Woolworths cut its forecast for fiscal 2026 earnings growth in that business, saying it no longer expects to hit the upper end of its mid-to-high single digit range. Higher fuel costs and more expense to hold on to shoppers are pressuring the outlook. CEO Amanda Bardwell said geopolitical conflict was “impacting our customers and team.” Reuters
Bulls point to the turnaround earlier this year. First-half profit before one-offs rose 16% to A$859 million. Australian Food sales climbed 5.8% in the first seven weeks of the second half. “Customers want value but they also want reliable value,” Bardwell told analysts then. Reuters
The risk is that the shares have priced in a full recovery. Analysts on average see the stock at A$34.88 in 12 months, about 10% under where it closed Tuesday. The most bullish target sits at A$39, just shy of the current price, and the lowest target is A$31.50. If discounting gets steeper, sales slow, or supply and transport costs rise again, margins could come under pressure and some of the defensive premium could go.
Woolworths’ next big company update comes with its fiscal 2026 full-year numbers on August 26. Before then, investors are focused on grocery price moves, volumes, and any signal that stiffer competition is driving up promotions. The shares have been moving, but its valuation doesn’t leave much room.
