Jefferies says Woolworths defied margin fears to post forecast-beating HY results

Coles

25/03/2026 18:56

** Jefferies says the sharp half-year sales turnaround by Australia's Woolworths WOW.AX surprised the market, helping it outperform rival Coles COL.AX by about 20% through reporting season

** Brokerage says WOW regained sales leadership thanks to renewed focus on impulse categories, price investment and higher store labour, but key surprise was margin resilience

** Jefferies adds suppliers provided significant support for price investment, helping co's headline gross margin expand

** Brokerage, however, warns big WooliesX uplift won't be repeated as e-commerce benefited from very weak base

** Adds, WOW's supermarket performance looks solid in tough consumer backdrop but maintains preference for Coles

** Jefferies rates WOW at "hold", keeps target price of A$36.38

** Five of 16 analysts rate the stock "buy" or higher, 11 "hold"; their median PT is A$35 – LSEG data

** WOW up over 23% this year

 (Reporting by Rajasik Mukherjee in Bengaluru)

 ((Rajasik.Mukherjee@thomsonreuters.com))