Shares in Woolworths jumped by more than 2% today after the supermarket group confirmed its profits forecasts.
However, the supermarket chain had soft sales at the start of the current financial quarter.
Its competitor Coles, owned by Wesfarmers, reported a 5.8% rise in food and liquor sales to $7.303 billion in the September quarter.
Woolworths chairman Ralph Waters told the company’s AGM the market remains very competitive.
“First quarter sales were softer than expected, and this has been reflected in the share price,” he says.
He reaffirmed management guidance for the 2015 financial year of growth in net profit of between 4% and 7%.
Woolworths posted lower than expected sales of $16.2 billion, up 3%, for the three months to the end of September.
For the 2014 financial year, Net profit was up 4.2% to $2.452 billion on sales of $60.8 billion.
Woolworths shares were up 2.4% to $31.83.