Woolworths Group reported a sharper-than-expected slowdown, with underlying profit for the year ended June dropping 19 % to A$1.39 billion after aggressive price cuts eroded margins in its core Australian Food division. The retailer said sales at that unit grew just 2.1 % in the first eight weeks of the new financial year, well below the 4.1 % consensus forecast and trailing rival Coles’ near-5 % advance, sending the stock down as much as 16 % to a five-month low. The earnings-to-sales margin in Australian Food narrowed to 5.4 % from 6.2 % a year earlier, weighed by higher wages, industrial action at distribution centres and stepped-up discounting aimed at repairing public perceptions over pricing. Chief Executive Officer Amanda Bardwell acknowledged the performance was “below our expectations” but said the group still targets mid- to high-single-digit operating-earnings growth for the division in FY26. The company trimmed its final dividend to 45 Australian cents a share from 57 cents and warned that falling tobacco sales could shave up to A$100 million off near-term earnings. The shortfall at Australia’s largest grocer added to a tough session for consumer and technology names. Domino’s Pizza Enterprises plunged about 20 % after swinging to a full-year loss and cutting its payout, while logistics-software maker WiseTech Global retreated on a softer profit outlook for FY26.