Woolworths boss Amanda Bardwell concedes group’s performance not good enough after steep profit decline

Woolworths chief executive Amanda Bardwell has conceded the supermarket giant’s performance is not up to scratch and vowed to restore it to growth after profits slumped in the 2025 financial year.

The group’s full-year earnings were weighed down by its flagship Australian grocery business — which was hit by a 17-day strike action by warehouse workers in December — while loses at the ailing department discount chain Big W worsened.

Group earnings before interest and tax hit $2.75 billion over the 12 month period, down 12.6 per cent on a normalised basis accounting for an extra week of trade in 2024. This was slightly below expectations of $2.78b.

It posted a 3.6 per cent lift in full-year revenue to $69.08b, but recorded a 17.1 per cent decline in net profit to $1.39b.

Woolworths shares slumped 14.7 per cent, or nearly $5, to $28.51 on Wednesday after Ms Bardwell admitted the results were below expectations. But she insisted it had a “clear plan in place” to return the company to growth.

It comes a day after rival Coles unveiled full-year results that beat market expectations.

“We know our performance isn’t where it should be,” Ms Bardwell told media on Wednesday, adding 2025 was a “disruptive year” as the company — along with Coles — faced legal action from the competition watchdog for allegedly faking discounts.

“At the same time, customers were clearly sending us a message that they were looking for more value,” she said.

“What we recognised is that we had an opportunity to move faster as it relates to providing that value in a clearer and more consistent way for our customers.

“While there is more to do and current trading remains below our long-term aspirations, we have seen some early positive signs and improving customer scores.”

Ms Bardwell said it would continue to lower prices “to restore price perception through a more balanced mix of everyday low prices and specials”.

Woolworths plans to spend more than $100 million this financial year on lowering prices.

The grocery giant recently slashed prices on nearly 700 everyday products.

“What customers are telling us is they’re stressed and overloaded, and the easier that we can make it to ensure that we’ve got consistent, reliable shelf prices that they know will be there and available day in and day out, we know that builds customer trust,” Ms Bardwell said.

Sales in the Australian food business rose 3.1 per cent to $51.45b in the year to June 29, but earnings slid 10.5 per cent to $2.75b.

Big W posted a loss of $35m last year compared with the $14m EBIT reported a year ago. Woolworths announced it would transition Big W to have its own technology platform.

While Ms Bardwell said Big W’s performance was “very disappointing”, she declined to answer questions about whether the group was readying the discount department chain for an eventual sale.

“In Big W, we need to sustainably improve performance in a highly competitive market and build on our areas of strength,” she said.

“(We) are taking the right steps to provide better quality and more affordable options.”

Earlier this year, Ms Bardwell, who stepped into the top job last September, unveiled a $400m cost-saving program to simplify the business.

It has since pulled the plug on its loss-making online marketplace MyDeal.

On Wednesday, she said the 2026 financial year would be transitional as it focuses on “rebuilding momentum and restoring customer trust”.

Ms Bardwell echoed her Coles counterpart Leah Weckert in noting the ongoing value-seeking behaviour from customers.

“We’re certainly continuing to see many customers, particularly families and young people, very much focused on value,” Ms Bardwell said.

“That means that they’re looking for lower prices. There has been an increase, as we know across the year, in cross shopping.

“There’s also been an increase in more frequent shopping . . . customers are visiting us more frequently but they’re buying less.”

She added that was a trend that had been in place over the past year, although it wasn’t accelerating.

Woolworths also joined a growing list of retailers that have witnessed an increase in crime and aggression towards staff.

“As a result, we have increased our investment in a variety of in store security measures and training,” Ms Bardwell said.

Ms Bardwell expects the Australian grocery business to return to mid to high single-digit earnings growth in 2026, despite tough trading conditions due to cost-of-living pressures and declining tobacco sales.

In the first eight weeks of the 2026 financial year, sales at Woolworths’ 1300 supermarkets rose 2.1 per cent, or by 4 per cent excluding tobacco.

This was lower than the 4.9 per cent growth Coles reported for the same period, with RBC Capital Markets analyst Michael Toner saying it implied ongoing market share loss to Coles.

Woolworths declared a final dividend of 45¢ per share, down from 57¢ a year ago.