Coles Group Ltd's stock plummeted 5.68% during intraday trading on Friday, following the release of its first-half financial results that fell short of market expectations.

The Australian supermarket chain reported an 11% decline in first-half profit to A$511 million, significantly missing the Visible Alpha consensus estimate of A$674.5 million. The results were hurt by a one-off charge of A$235 million related to additional remediation expenses for historical staff underpayments, following a federal court decision last year.

Coles also flagged a soft start to the second half of fiscal 2026, with supermarket sales growing 3.7% in the first seven weeks of the third quarter. This growth missed market expectations of 4.3% and trailed the 5.8% growth reported by larger rival Woolworths. The company's liquor division saw earnings plunge 37.3% in the first half, with sales declining 3.2% and falling a further 2.5% in the current quarter. Coles CEO Leah Weckert stated that "value remains front of mind for our customers" and expects "the market to remain highly competitive."