Woolworths in Australia Reports Lower-than-Expected Sales, Stock Prices Drop

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 27 2025

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Source: Reuters

Woolworths Annual Profit Decline: Australia's leading supermarket chain, Woolworths, reported a 19% drop in annual profit due to price cuts aimed at addressing consumer backlash and sluggish sales growth.
Sales Growth Below Expectations: The company experienced weaker-than-expected sales growth of only 2.1% in the first eight weeks of the new fiscal year, falling short of analyst forecasts.
Regulatory Scrutiny: Woolworths, along with rival Coles, is facing lawsuits from the Australian Competition and Consumer Commission for allegedly misleading pricing practices, which has contributed to reputational damage.
Future Outlook and Challenges: Despite expectations for mid- to high-single-digit earnings growth in the current financial year, Woolworths warned of potential headwinds from declining tobacco sales and other operational challenges impacting profitability.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.