Overview
- Coles reported a $1.1 billion net profit and Woolworths reported $1.138 billion for the year to June 28, 2026, with both companies saying results were materially reduced by large Fair Work underpayment expenses.
- Both firms said their profits would have been substantially higher without the Fair Work charges, with Coles’ pro forma profit near $1.26 billion and Woolworths’ pro forma near $1.599 billion.
- The Federal Court found that Coles made false or misleading discounting claims linked to its 'Down Down' campaign, a ruling that has added reputational and legal pressure on the company.
- Woolworths credited its Disney 'Ooshies' collectibles promotion with lifting early FY27 sales and changing shopper habits, and a YouGov poll found a large share of adults and parents reported shifting where they shop because of the campaign.
- Analysts warn that rising costs for fuel, freight, packaging and wages are squeezing margins and that Woolworths’ planned asset sales — expected to sharply cut net debt — will be watched for possible buybacks or special dividends and for how they alter competition and prices for shoppers.