Woolworths May Find Sales Momentum Hard to Maintain -- Market Talk

Dow Jones
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0220 GMT - Morgan Stanley suggests investors should curb their enthusiasm a little following supermarket chain Woolworths's 1H result. Woolworths shares rise 0.8% to A$35.93 today, building on Thursday's 13% gain. Woolworths's 1H EBIT beats consensus expectations, reflecting better-than-expected sales in its Australian food business and stronger margins. MS raises its FY 2026-2028 estimates by 4-5%, driven by Australian food and the Big W discount department store business. "While improving trading is a key positive out of the result, we maintain caution around the longevity of the topline momentum, noting upside risk to price investment, removal of cycling benefits from industrial action, and elevated competition notably in ecommerce," analyst Melinda K. Baxter says. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

February 25, 2026 21:20 ET (02:20 GMT)

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