Woolworths (ASX:WOW) has signalled a robust recovery in the first half of FY26, posting a 16.4% jump in net profit to $859 million as it narrows the competitive gap with rival Coles (ASX:COL).
Despite a heavy $485 million hit related to historical staff underpayment issues—which pulled statutory net profit down to $374 million—the retail giant saw total sales climb 3.4% to $37.14 billion.
CEO Amanda Bardwell credited the turnaround to a strategic focus on "value and fresh offer" and a powerhouse Christmas trading period, particularly within the Australian Food division, where earnings rose nearly 10%.
With market share stabilising and momentum building into the second half, the group has maintained its full-year guidance and declared an interim dividend of 45 cents per share.
At the time of reporting, Woolworths' share price was $34.84.