Here's how Woolworths shares smashed Coles shares in February

Investors rewarded Woolworths in February while punishing Coles shares. But why?

Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) shares had remarkably different runs in the month just past.

While Coles shares underperformed the 3.7% gains posted by the S&P/ASX 200 Index (ASX: XJO) in February, Woolies stock raced ahead of those gains.

On 30 January, Coles shares were trading for $21.28. When the closing bell sounded on 27 February, shares were changing hands for $20.56 apiece, down 3.4% for the month.

Woolworths shares, on the other hand, closed out January trading for $30.94 and ended February at $36 each, up 16.4%.

Here's what's been happening with the ASX 200 supermarket giants.

A man in a supermarket strikes an unlikely pose while pushing a trolley, lifting both legs sideways off the ground and looking mildly rattled with a wide-mouthed expression.

Image source: Getty Images

Woolworths shares rocket on results

The biggest news out of Woolworths in February was the release of the company's half-year results on 25 February.

Woolworths shares closed up 13% on the day after reporting (before significant items) a 3.4% year-on-year increase in sales for the six-month period to $37.14 billion.

And with all of the company's segments achieving year-on-year earnings growth, the ASX 200 supermarket achieved 14.4% growth in earnings before interest and tax (EBIT) to $1.66 billion.

On the bottom line, Woolies reported a net profit after tax (NPAT) of $859 million, up 16.4% year on year.

The Woolworths shares also likely got a boost from passive income investors after management increased the fully-franked interim dividend by 15.4% from last year's payout to 45 cents per share.

If you want to bank the interim Woolworths dividend, you'll have to hurry. Woolies stock trades ex-dividend tomorrow, meaning you'll need to own shares at market close today to receive that payout. You can then expect to receive the Woolworths dividend on 2 April.

Coles shares hammered on results

Coles released its own half-year results two days later, on 27 February.

Unlike Woolworths shares, Coles stock closed down 7.4% on the day the supermarket reported.

Market expectations were clearly high following Woolworths' strong results, with Coles coming under selling pressure despite reporting a 2.5% year-on-year increase in sales revenue to $23.6 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) – excluding significant items – of $2.21 billion increased by 7.8%.

And Coles' NPAT of $676 million was up 12.5% from H1 FY 2025.

With profits up, management declared a fully-franked interim dividend of 41 cents per share. That's up 10.8% from last year's interim payout.

You've got a little more time if you're looking to grab the Coles dividend. The ASX 200 stock trades ex-dividend on 10 March, meaning you'll need to own shares at market close on 9 March. You can then expect to see that passive income payout on 30 March.

Comparing the results between the two supermarket giants, Woolworths shares look to have benefited from materially stronger key growth metrics than Coles posted in the first half.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Two happy woman on a couch looking at a tablet.
Consumer Staples & Discretionary Shares

Adairs vs Temple & Webster: Which ASX retail stock wins for October?

Adairs and Temple & Webster both look beaten up, but only one stacks up as the stronger retail buy for…

Read more »

Woman holding several shopping bags.
Consumer Staples & Discretionary Shares

Lovisa vs Baby Bunting: Which ASX retailer is the better buy today?

Lovisa and Baby Bunting face off: which ASX consumer discretionary share deserves a place in your portfolio?

Read more »

Cropped shot of a mature businessman brainstorming and setting financial goals with notes on a glass wall.
Consumer Staples & Discretionary Shares

Tabcorp vs The Lottery Corporation: Which ASX gaming share comes out on top?

Breaking down Tabcorp vs The Lottery Corporation: which ASX gaming stock looks most attractive on dividends, value, and earnings this…

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Consumer Staples & Discretionary Shares

This ASX retail stock is sliding today after a surprise CEO exit

A major shake up has investors selling this ASX stock.

Read more »

A woman sits on sofa pondering a question.
Consumer Staples & Discretionary Shares

Temple & Webster vs Nick Scali: Which furniture share is better?

Temple & Webster and Nick Scali are both ASX furniture retailers — but which looks like the better buy today?

Read more »

Two mature women learn karate for self defence.
ASX Share Market News

Investors get defensive as ASX 200 drifts to a 15-week low

The traditionally defensive consumer staples and healthcare sectors performed best last week.

Read more »

Woman using smartphone to check product details while shopping in a grocery store aisle.
Consumer Staples & Discretionary Shares

Woolworths shares jump 31% in 2026. Is there any upside left?

The supermarket giant is trading in the green again on Friday afternoon.

Read more »

Smiling woman checking out clothes at a shop.
Consumer Staples & Discretionary Shares

Premier Investments vs Myer: Which ASX Retail Stock is Best?

Premier Investments and Myer are retail favourites — here's which ASX stock I think stands out for income and value…

Read more »