Coles’ shares surged on Tuesday after the Australian grocer flagged sustained strength in sales at its core supermarkets division, which helped investors look past softer-than-expected earnings for fiscal 2025.
Coles Group (ASX:COL) shares rose 8.2% to A$22.42 by 21:04 ET (01:04 GMT), outpacing a 0.4% drop in the ASX 200.
The company said supermarkets sales revenue rose nearly 5% in the first eight weeks of the current fiscal year, flagging a positive start to the period. Excluding tobacco, which has become a persistent weight on Coles’ sales, supermarkets revenue surged 7%.
This came after Coles logged a 1.8% increase in its group revenue for the 12 months to June 30. Net profit fell 3.5% to A$1.08 billion ($650 million), also missing Reuters estimates of A$1.11 billion.
The stronger revenue was driven chiefly by robust non-tobacco sales in Coles’ supermarkets division. But this was in part offset by higher operating costs, especially in financing and leasing.
Shares of Australia’s second-largest grocer, behind Woolworths, rose as signs of a strong start to the current fiscal year largely offset middling earnings for fiscal 2025.
Woolworths Ltd (ASX:WOW) shares rose 2.4%. The supermarket giant is set to report its annual earnings on Wednesday.
Source :
https://www.investing.com/news/stock-market-news/coles-shares-rise-as-strong-supermarket-sales-offset-fy-profit-miss-4210014
