WOW +3.42%: Posted a solid FY26 result demonstrating that its core Australian supermarkets business is regaining momentum, with FY26 EBIT modestly ahead of expectations and an impressive start to FY27. Australian Food did the heavy lifting, while the early sales acceleration — even allowing for a sizeable boost from Ooshies — suggests Woolworths has started FY27 with better momentum than rival Coles – we’ve preferred WOW to COL for some time now.
Key results:
- Sales of A$71.54bn, up 3.6% and broadly in line with expectationsGroup earnings
- Earnings (EBIT) before significant items of A$3.11bn, up 13% and ~2% ahead of A$3.05bn expected.
- Net profit NPAT of A$1.14bn, up 18% but slightly below A$1.16bn expected.
- Final dividend increased to 52cps, from 45cps.
The real kicker was current trading, something which has seen huge divergence among retailers through this reporting season. Australian Food sales are up 7.6% through the first eight weeks of FY27, comfortably ahead of Coles’ 3.7%. Disney Ooshies contributed an estimated 1.5–2 percentage points, so we shouldn’t extrapolate the headline number, but even stripping that out leaves a healthy underlying run-rate. Elsewhere the picture is less convincing: BIG W sales remain under pressure, New Zealand conditions are subdued, and FY27 will carry ongoing wage and other cost pressures.
MM’s view: This is the sort of result WOW needed. Australian Food is the engine room and it’s finally showing signs of firing again, with both earnings and early FY27 sales better than feared. We wouldn’t get carried away with the 7.6% sales number — Ooshies have clearly juiced it and the competitive comparison gets tougher from here — but after a difficult period, Woolworths has at least wrestled back some momentum.
MM remains bullish toward WOW
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