Australia: Petstock lifts Woolworths earnings in H1

Woolworths Group’s pet business, Petstock, posted AU$482 million ($318M/€294M) in sales for the first half (H1) of fiscal year (FY) 2026, ending 4 January, representing 13.1% year-over-year (YoY) growth.

Comparable sales increased 5.8%, driven by e-commerce growth of 24% following price investments and the launch of the new Pet Cash loyalty program, the company says.

Sales from own and exclusive brands grew 28%, supported by growth in the fresh category, the opening of 3 new stores, franchise site repurchases and the acquisition of own-brand pet food manufacturing and accessories businesses in H2 2025.

Earnings before interest and taxes (EBIT) reached AU$32 million ($21M/€20M), a surge of 49.6% YoY. According to the group, this growth reflects strong comparable sales, benefits from acquisitions and improved buying, driving gross margin expansion and disciplined cost management.

Group’s H1 performance 

Australia’s largest retailer’s sales for the period increased 3.4% YoY to AU$37.1 billion ($24.5B/€22.6B), with all segments recording growth during H1. Group e-commerce sales also rose by 14.6% YoY to AU$5.4 billion ($3.6B/€3.3B).

Net profit after tax increased 16.45% to AU$859 million ($567M/€524M). Meanwhile, EBIT rose 14.4% to AU$1.6 billion ($1.1B/€1.0B).

Second quarter

Woolworths just released Q2 data for the company and its business segments, including food and B2B, but not for Petstock. Group sales during the period amounted to AU$18.6 billion ($12.3B/€11.3B), an increase of 4.1% YoY. Compared to the previous quarter, group sales improved marginally by 0.5%.

“We are making progress on the strategy we outlined in August and have invested in value, our fresh offer, On-demand convenience, and in-store execution. All customer metrics have improved, trading momentum is stronger and we are seeing market share stabilize,” says Amanda Bardwell, Group CEO of Woolworths.

Outlook

The company groups its operations into Australia and New Zealand Food and W Living (comprising the subcategories Clothing, Play, Home and Everyday), and has just released guidance per group. 

Reported FY2026 EBIT growth for Australian Food is expected to be in the mid-to-high single-digit range, reflecting the H1 performance and improved trading momentum. BIG W is expected to deliver positive EBIT, but Woolworths did not provide a number.

“As we look to H2, trading in Q3 to date has been strong in Australian Food; however, customers continue to be value-focused, shopping multiple retailers in a highly competitive environment,” Bardwell says.