Woolworths Group's Food Gross Margins Hold up Well Given Competitive Environment, RBC Says

MT Newswires Live08-26 13:05

Woolworths Group's (ASX:WOW) food gross margins held up well given the competitive environment, RBC Capital Markets said in a Wednesday note.

The group's fiscal 2026 earnings before interest and tax (EBIT) were a "solid" 2.1% beat to RBC's estimated group EBIT, underpinned by the Australian food segment EBIT beating expectations by 1.6%.

The first eight weeks of 7.6% sales growth, or around 5.6% to 6.1% on an underlying basis, shows strength continuing into the first fiscal 2027 quarter and tracking around 2% ahead of Coles' (ASX:COL) underlying estimates. However, Woolworths had a soft result in the fiscal 2026 first quarter, it noted.

Its New Zealand food segment fourth fiscal quarter sales growth was a 50 basis points miss to RBC's estimates and a 70 basis points miss compared with consensus estimates. EBIT was a 3.4% miss to RBC's estimates and a 0.9% miss compared with consensus estimates.

The brokerage assigned Woolworths an underperform rating and a price target of AU$35 per share.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2662762758?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-08-26 13:05","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2662762758","market":"nz","top_or_hot":-1,"title":"Woolworths Group's Food Gross Margins Hold up Well Given Competitive Environment, RBC Says","media":"MT Newswires Live","content":"<html><body><p> Woolworths Group's (ASX:WOW) food gross margins held up well given the competitive environment, RBC Capital Markets said in a Wednesday note.</p><p>The group's fiscal 2026 earnings before interest and tax (EBIT) were a \"solid\" 2.1% beat to RBC's estimated group EBIT, underpinned by the Australian food segment EBIT beating expectations by 1.6%.</p><p>The first eight weeks of 7.6% sales growth, or around 5.6% to 6.1% on an underlying basis, shows strength continuing into the first fiscal 2027 quarter and tracking around 2% ahead of Coles' (ASX:COL) underlying estimates. However, Woolworths had a soft result in the fiscal 2026 first quarter, it noted.</p><p>Its New Zealand food segment fourth fiscal quarter sales growth was a 50 basis points miss to RBC's estimates and a 70 basis points miss compared with consensus estimates.  EBIT was a 3.4% miss to RBC's estimates and a 0.9% miss compared with consensus estimates.</p><p>The brokerage assigned Woolworths an underperform rating and a price target of AU$35 per share.</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Woolworths Group's Food Gross Margins Hold up Well Given Competitive Environment, RBC Says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWoolworths Group's Food Gross Margins Hold up Well Given Competitive Environment, RBC Says\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1092851196\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">MT Newswires Live </p>\n<p class=\"h-time\">2026-08-26 13:05</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><p> Woolworths Group's (ASX:WOW) food gross margins held up well given the competitive environment, RBC Capital Markets said in a Wednesday note.</p><p>The group's fiscal 2026 earnings before interest and tax (EBIT) were a \"solid\" 2.1% beat to RBC's estimated group EBIT, underpinned by the Australian food segment EBIT beating expectations by 1.6%.</p><p>The first eight weeks of 7.6% sales growth, or around 5.6% to 6.1% on an underlying basis, shows strength continuing into the first fiscal 2027 quarter and tracking around 2% ahead of Coles' (ASX:COL) underlying estimates. However, Woolworths had a soft result in the fiscal 2026 first quarter, it noted.</p><p>Its New Zealand food segment fourth fiscal quarter sales growth was a 50 basis points miss to RBC's estimates and a 70 basis points miss compared with consensus estimates.  EBIT was a 3.4% miss to RBC's estimates and a 0.9% miss compared with consensus estimates.</p><p>The brokerage assigned Woolworths an underperform rating and a price target of AU$35 per share.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7040","symbol_name":"食品零售","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2662762758","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2662762758","pubTimestamp":1787720714,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"Woolworths Group's  food gross margins held up well given the competitive environment, RBC Capital Markets said in a Wednesday note.The group's fiscal 2026 earnings before interest and tax  were a \"solid\" 2.1% beat to RBC's estimated group EBIT, underpinned by the Australian food segment EBIT beating expectations by 1.6%.The first eight weeks of 7.6% sales growth, or around 5.6% to 6.1% on an underlying basis, shows strength continuing into the first fiscal 2027 quarter and tracking around 2% ahead of Coles'  underlying estimates. However, Woolworths had a soft result in the fiscal 2026 first quarter, it noted.Its New Zealand food segment fourth fiscal quarter sales growth was a 50 basis points miss to RBC's estimates and a 70 basis points miss compared with consensus estimates.  EBIT was a 3.4% miss to RBC's estimates and a 0.9% miss compared with consensus estimates.The brokerage assigned Woolworths an underperform rating and a price target of AU$35 per share.","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7040":"食品零售","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","WOW.AU":"WOOLWORTHS GROUP LTD","BK7501":"新冠治疗股","COL.AU":"COLES GROUP LTD","BK7082":"大卖场与超市","BK7511":"ESG概念"},"translate_title":"加拿大皇家银行表示，考虑到竞争环境，伍尔沃斯集团的食品毛利率保持良好","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EBIT":1,"COL.AU":1,"WOW.AU":1.5},"content_text":"Woolworths Group's (ASX:WOW) food gross margins held up well given the competitive environment, RBC Capital Markets said in a Wednesday note.The group's fiscal 2026 earnings before interest and tax (EBIT) were a \"solid\" 2.1% beat to RBC's estimated group EBIT, underpinned by the Australian food segment EBIT beating expectations by 1.6%.The first eight weeks of 7.6% sales growth, or around 5.6% to 6.1% on an underlying basis, shows strength continuing into the first fiscal 2027 quarter and tracking around 2% ahead of Coles' (ASX:COL) underlying estimates. However, Woolworths had a soft result in the fiscal 2026 first quarter, it noted.Its New Zealand food segment fourth fiscal quarter sales growth was a 50 basis points miss to RBC's estimates and a 70 basis points miss compared with consensus estimates.  EBIT was a 3.4% miss to RBC's estimates and a 0.9% miss compared with consensus estimates.The brokerage assigned Woolworths an underperform rating and a price target of AU$35 per share.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.47.1","shortVersion":"4.47.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2662762758","isCrawlerRequest":true}