Coles Group Limited shares fell sharply today, dropping 9 per cent following the release of its first-half profit results, which revealed a significant decline attributed to penalties imposed by a Federal Court ruling regarding underpayment of workers. The stock closed at $21.87, down $0.17 (0.78 per cent) from its previous close, according to the Australian Securities Exchange (ASX).
The profit fall comes after a September 2026 Federal Court decision levied penalties against Coles for failing to adequately compensate employees. Details of the specific underpayment issues were not immediately available, but the court ruling is cited as a primary factor in the company’s diminished first-half performance.
The decline in Coles’ share price contributed to a generally flat performance for the ASX 200 index, which ended the day down just 1 point at 9,173. Market activity was also influenced by developments in other sectors. Australia Post reported a 5 per cent rise in parcel volumes during the peak period, driven by increased eCommerce demand, though its letters service continues to operate at a loss.
Elsewhere on the Australian market, Block experienced a rally, even as gold miners also saw gains. However, Harvey Norman also recorded a slump in its share price alongside Coles. The broader global economic picture presented a mixed outlook, with the S&P 500 down 0.6 per cent and the Nasdaq falling 1.3 per cent, while European and UK markets showed modest gains.
Commodity prices were relatively stable, with spot gold remaining flat at $US5,187 per ounce and Brent crude oil decreasing slightly to $US70.48 per barrel. Iron ore saw a marginal increase to $US98.30 per tonne, and Bitcoin experienced a minor dip to $US67,222.
Australia Post is currently delivering 3,075 parcels per minute, highlighting the continued growth in the eCommerce sector. Fewer than 3 per cent of letters sent are from individuals, indicating a significant shift towards digital communication.
