Why did the Woolworths share price underperform on Thursday?

Sad person at a supermarket.Sad person at a supermarket.

The Woolworths Group Ltd (ASX: WOW) share price was one of its sector’s worst performers on Thursday. That’s despite no word having been released by the company.

As of Thursday’s close, the Woolworths share price is $34.63, 1.54% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) also struggled today, sliding 0.80%.

So, what’s likely weighing on the supermarket giant’s stock today? Let’s take a look.

What’s dragging on the Woolworths share price?

Woolworths’ stock was in the red today, as were many of its S&P/ASX 200 Consumer Staples Index (ASX: XSJ) peers.

The sector slumped 1.09% lower on Thursday, handing back much of its gains for the week so far.

Sadly for Woolies investors, the supermarket operator was the sector’s third worst performer on Thursday.

Though, it outperformed the share prices of Blackmores Limited (ASX: BKL) and United Malt Group Ltd (ASX: UMG). They fell 3.76% and 2.63% respectively today.

The drop came after the Woolworths share price hit its lowest point since early March – $30.09 – last week. At today’s intraday low – $34.35 – it was back within 1% of the three-month low.

That’s despite no news having been released by the company since it proposed to acquire 80% of online marketplace operator MyDeal.com.au Ltd (ASX: MYD).

Interestingly, the supermarket giant’s major competitor Coles Group Ltd (ASX: COL) was among the consumer staples sector’s top performers on Thursday. It slumped just 0.45%.

Unfortunately the Woolworths share price hasn’t been performing any better over the longer term. It’s been underperforming the broader market for most of this year.

It’s currently 9% lower than it was at the start of 2022. Meanwhile, the ASX 200 has slipped 4%.

The stock has also tumbled 7% over the last 12 months compared to the index’s around 0.6% dip.

The post Why did the Woolworths share price underperform on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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