Why did the Coles share price fall 7% today?

The drop followed a weaker 1H26, with net profit down 11.3% to A$511 million, which raised questions about margins and price investment. An ACCC misleading promotions case added a regulatory risk premium. Together, these factors drove a reset in valuation and earnings expectations. The move also stood out because the broader ASX ended higher, pointing to stock-specific pressures rather than macro weakness.

Is Coles cheap after the selloff?

At A$20.56, Coles trades on 25.5x TTM earnings, 0.62x sales, and 7.22x book. The dividend yield is 3.36% with an 82% payout ratio, and free cash flow yield is about 5.25%. Valuation is not distressed and depends on margin recovery and sales resilience. Elevated leverage and a regulatory overhang temper the case for a quick re-rating despite the lower price.

What levels matter for traders after today’s move?

Price closed at A$20.56, near the Keltner lower band at A$20.68 and below the Bollinger lower band at A$21.08, which flags a stretched move. The 50-day and 200-day averages sit at A$21.41 and A$21.91. Day low was A$20.10, and the year low is A$18.33. RSI at 34.6 and CCI at -288 indicate near-term oversold conditions to watch.

How does Coles stack up against Woolworths right now?

Coles underperformed its rival, reflecting investor views that Woolworths is executing better on sales mix and margin stability. The contest is tight across price, loyalty offers, and online logistics. If Coles deepens promotions to protect share, margins may feel pressure. Stabilized promo depth, improved availability, and stronger own-brand penetration would support a closer gap and reduce valuation discount risk.

Global Market Insights

COL.AX Stock Today, February 28: 7% Slide on 1H Miss, ACCC Risk

ByHuzaifa Zahoor February 28, 2026February 28, 2026

Coles share price fell 7% to A$20.56 today after 1H26 net profit dropped 11.3% to A$511 million and an ACCC misleading promotions case added uncertainty. The early slide in COL.AX stood out as the broader ASX finished higher. Investors are reassessing margins, price investment, and the competitive gap with Woolworths. We outline what changed, where support may sit, and the near-term watch list for 2H26. Our aim is to help Australian investors weigh risks against income, cash flow, and valuation signals now in focus.