Woolworths Group Ltd (ASX: WOW) shares are getting hammered today.
Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $37.29. In earlier morning trade on Thursday, shares just crashed to $33.63, down 9.8%. After some likely bargain hunting, shares are currently changing hands for $34.74 apiece, down 6.8%.
For some context, the ASX 200 is down 0.5% at this same time.
This underperformance follows the release of Woolworths' third quarter sales results (Q3 FY 2026).
Here's what's catching investor interest.
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Woolworths shares sink on looming headwinds
For the 13 weeks to 5 April, Woolworths reported total sales of $18.1 billion, up 4.5% from Q3 FY 2025.
Up 5.9% year-on-year to $13.8 billion, Australian Food sales remain a cornerstone for the ASX 200 supermarket. The company noted that underlying trading momentum remained solid.
However, investors may be feeling jittery today with management noting they have seen "some signs of increased customer caution".
Management expects that Australian Food earnings before interest and tax (EBIT) growth for FY 2026 will remain in the mid to high single digits, but no longer at the upper end of that range.
Woolworths shares also aren't getting a boost today, despite eCommerce sales increasing by an impressive 20.2% to $2.7 billion. Woolworths eCommerce segment now represents 16.6% of all its Australian Food sales.
The supermarket had a more challenging quarter with its New Zealand Food sales, which decreased by 5.2% in Aussie dollar terms to $1.81 billion. (In New Zealand dollar terms, Food sales of NZ$2.15 billion were up 1.4% quarter-on-quarter.) Management said this reflected lower market growth and a highly competitive market.
Rounding off the company's major segments, sales at its W Living division, which comprises BIG W and Petstock, were up 4.8% year on year to $1.27 billion. The company said that despite BIG W sales growth "remaining modest", the store is on track to deliver positive EBIT and cash flow for FY 2026.
What did management say?
Commenting on the results that are pressuring Woolworths shares today, CEO Amanda Bardwell said:
In Q3 we made further progress on our strategic priorities with investment in value, fresh, convenience and execution delivering improved sales momentum in Australian Food which drove strong Group sales growth.
Looking ahead, Bardwell added:
The conflict in the Middle East is creating greater uncertainty for our customers, suppliers and team at a time when cost-of-living pressures are already acute. While the impact on the group to date has been limited, higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year…
The group has mobilised rapidly to respond to this environment, and we are engaging regularly with government as their response plans are developed.
With today's intraday slump factored in, Woolworths shares remain up 10.0% over 12 months, not including dividends.
