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Woolworths's Profit Margin Likely Faces 2Q Squeeze -- Market Talk

Dow Jones
Yesterday

2237 GMT - Supermarket chain Woolworths's profit margin has likely come under pressure, setting it up to miss consensus expectations in 1H, contends Morgan Stanley. Woolworths's food business in Australia likely experienced a contraction of 30 basis points in its 1H gross profit margin. That reflects a significant step up in promotional activity in 2Q, analyst Melinda K. Baxter says. Woolworths doesn't have many levers to offset that impact in the near term. MS suggests Woolworths's share price could fall by mid-single-digit percent if it's right. It retains an equal-weight call and A$31.30/share price target on Woolworths, which ended Thursday at A$31.61. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

February 05, 2026 17:37 ET (22:37 GMT)

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