WOW -0.46%: delivered a solid 1Q27 update, with Australian Food the clear standout as price investment helped drive stronger customer traffic and market-share gains. However, trading has moderated since the Ooshies promotion ended, while Big W and New Zealand remain softer parts of the group.
Key Q1 highlights:
- Group sales: A$19.35bn, up 4.7% YoY.
- Australian Food sales: A$14.84bn, up 6.9% YoY.
- Australian Food comparable sales: up 6.1%.
- Australian B2B sales: A$1.63bn, up 4.4%.
- New Zealand Food sales: A$1.85bn, down 6.4% in AUD terms.
- W Living sales: A$1.38bn, down 0.7%.
The key positive was Australian Food, where lower prices, stronger transaction growth and improved value perception are clearly resonating. Own-brand sales rose strongly, while e-commerce growth remained another bright spot.
The offset is a still-challenging consumer backdrop. Management said growth has moderated since the promotional boost from Ooshies faded, while Big W continues to drag and New Zealand remains under pressure.
Overall, a constructive update as WOW appears to be regaining momentum in its core Australian supermarket business.
MM remains neutral WOW ~$40
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