Woolworths Group Ltd (ASX: WOW) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $31.44. In afternoon trade on Thursday, shares are swapping hands for $31.34 apiece, down 0.3%.
For some context, the ASX 200 is down 0.2% at this same time.
While Woolworths shares are up 2.7% in 2025, they remain down 9.3% since this time last year.
Though those losses will have been moderately mitigated by the two fully franked dividends Woolies paid out over the year, totalling $1.36 a share.
Which brings us back to our headline question.
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Woolworths shares: Buy, hold, or sell?
Red Leaf Securities' John Athanasiou recently ran his slide rule over Australia's biggest supermarket.
"Woolworths is a defensive retail giant with a commanding market share that generates consistent cash," said Athanasiou, who has a hold recommendation on Woolworths shares.
"While resilient, headwinds from inflation, supply chain disruptions and cautious consumer spending during fiscal year 2025 may pressure margins," he noted.
Athanasiou concluded:
The company's strong brand and balance sheet make it a reliable choice to hold through economic cycles. However, with limited growth catalysts on the horizon, Woolworths is best held for stability rather than aggressive upside.
What's the latest from the ASX 200 retail stock?
The last price-sensitive news for Woolworths shares was the company's third-quarter update, released on 1 May.
For the three months to 6 April, Woolies achieved sales of $17.3 billion, up 3.2% year on year.
Supermarket sales were up 3.4%, or 4.8% excluding tobacco.
Leading the growth path, WooliesX, the company's online arm, reported year-on-year sales growth of 15.6% to $2.39 billion.
"Cost of living remains a concern for customers, however customer scores were largely stable during the quarter and sales growth rates improved modestly across the group," Woolworths CEO Amanda Bardwell said at the time.
She noted:
Australian Food total sales increased by 3.6% with eCommerce growth of 16.3%. Our focus on value through lower prices for customers in Long Life groceries has led to the fifth consecutive quarter of average price declines, excluding Tobacco
Bardwell added:
We remain focused on the priorities set out in February which include improving our retail fundamentals in value, availability and range, simplifying the way we work and unlocking the full potential of the group.
While the market remains competitive and consumer outlook uncertain, we are making progress in these areas.
Woolworths shares closed up 1.2% on the day.
The company is scheduled to release its FY 2025 full-year results on 27 August.
