Coles (COL) 2nd quarter beats, but the stock trades lower
Coles (COL) -0.12%; provided the market with a trading update this morning ahead of their official half year numbers due out in a fortnight. The update was a positive one for Coles’ supermarkets, showing 3.6% same store sales growth for the second quarter with the Christmas trade period exceeding expectations. The strong supermarket numbers were backed up by sales growth of 2.1% in liquor, and 5.1% in Coles’ express stores for the second quarter of the year. The plastic bag ban and lower flybuys promotional activity are expected to provide a one off boost to EBIT margins in the 1st half of the year. Liquor, though, will see margin pressure as clearance and promotional activity increased with what the company called ”strategic range views.”
Coles (COL) Chart
