MELBOURNE, August 24, 2026, 01:36 AEST
- Coles saw its market value drop by roughly A$965 million last week.
- An alcohol pricing mistake over the weekend later caused issues on its website and app.
- FY26 earnings will be published on Tuesday, prior to the opening of the market.
- The consensus analyst price target indicates just a 4.2% potential gain from Friday’s close.
Coles Group Limited ASX:COL is set for a digital performance test ahead of Tuesday’s results, as an alcohol pricing issue disrupted online purchases following a 3.1% drop in shares last week.
The drop wiped out about A$965 million in equity value. Coles ended Friday at A$22.82, marking its fourth session of losses in the last five.
The technical issue emerged following the close of ASX trading. As a result, no stock prices have reacted so far. The initial market response will be seen on Monday, a day ahead of FY26 results.
Online prices for certain 24-packs plunged by close to 80%. A Jack Daniel’s pack was reduced to A$27, down from A$130. A Smirnoff case decreased to A$29, previously A$202.
| Weekend incident | Verified figure | Investor relevance |
|---|---|---|
| Reddit post audience | Over 180,000 views | Demand surged in response |
| Products impacted | No fewer than 20 beer packs, 46 RTD cases | Extent of pricing controls |
| Typical beer markdown | Roughly A$49 | Exposure to cancellations and refunds |
| Typical RTD markdown | Roughly A$111 | Greater exposure by unit |
| Greatest discount | A$173 | Prices dropped from A$202 to A$29 |
| Website operational | Restored at around 4 p.m. Saturday | Downtime continued for several hours |
Coles reported that certain beer and ready-to-drink items had been listed at incorrect prices. “The error has been corrected, and impacted customers are being notified,” a company spokesperson stated. Customers who were overcharged are set to receive refunds. Guardian Australia
The exact direct cost has not been disclosed. Reliability poses a greater concern. Coles reported a 24.8% increase in supermarket e-commerce sales for the third quarter, as liquor sales dropped by 3.9%.
| Share-price comparison | August 14 | August 21 | Weekly move | Estimated value change |
|---|---|---|---|---|
| Coles ASX:COL | A$23.54 | A$22.82 | -3.06% | -A$0.96 billion |
| Woolworths Group Limited ASX:WOW | A$40.00 | A$38.86 | -2.85% | -A$1.39 billion |
Shares of both supermarket chains fell ahead of their earnings updates. Woolworths will post its results on Wednesday, putting online expansion, food price rises, and consumer spending shifts in focus for the sector in the coming week.
| Upcoming results | Coles | Woolworths |
|---|---|---|
| Earnings announcement date | August 25 | August 26 |
| Revenue forecast for FY26 | A$45.60 billion | Not used |
| Projected revenue increase | 2.5% | Not used |
| FY26 projected EPS | A$0.92 | Not used |
| Forecast EPS growth | 14.7% | Not used |
| Primary operational focus | Online sales and performance in liquor segment | Addressing margin improvement |
Coles’ current valuation offers little buffer for disappointing results. Shares are priced at 23.75 times forecast earnings, which is less than Woolworths’ 28.05 times but exceeds Coles’ recent pace of growth.
| Operating and valuation metric | Coles | Woolworths |
|---|---|---|
| Trailing revenue | A$45.08 billion | A$70.28 billion |
| Profit margin | 2.25% | 0.85% |
| Free cash flow | A$1.56 billion | A$2.29 billion |
| Forward P/E | 23.75× | 28.05× |
| Dividend yield | 3.20% | 2.31% |
| Net debt | A$9.97 billion | A$15.91 billion |
Wall Street sentiment stays upbeat, although target estimates vary considerably. The consensus from 15 analysts sits at A$23.77, suggesting a 4.2% potential rise from Friday’s closing price.
| Analyst / firm | Rating | Target | Implied move | Date |
|---|---|---|---|---|
| Adrian Lemme / Citi | Buy | A$23.00 | +0.79% | August 16 |
| Shaun Cousins / UBS | Hold | A$25.50 | +11.74% | August 7 |
| Michael Simotas / Jefferies | Buy | A$26.50 | +16.13% | July 29 |
| Melinda Baxter / Morgan Stanley | Buy | A$25.00 | +9.55% | July 27 |
| Ord Minnett | Buy | A$27.00 | +18.32% | July 22 |
| 15-analyst consensus | Buy | A$23.77 average | +4.16% | Current |
Risks: The amount of accepted orders and the expense of refunds have not been revealed. Tuesday’s outcome may overshadow the incident. If the online update falls short, it could escalate a minor mistake into a larger issue regarding execution.
Australia’s market remains shut overnight. Investors need to distinguish the probable minimal immediate cost of the glitch from its broader implication. Online sales and liquor margin results reported on Tuesday will indicate if that implication holds significance.
