Tesco said its Irish sales were up 1.3 per cent to £567 million (€638 million) in its most recent quarter, while underlying group sales growth slowed.
The group said its Irish sales had been supported by a targeted coupon campaign and its You Won’t Pay More policy. Moreover, Tesco said that it had outperformed a subdued UK market.
It said UK like-for-like sales rose 0.4 per cent in the 13 weeks to May 25th. That was a 14th straight quarter of growth and compared to analysts’ forecasts in a range of flat to up 1 per cent, and growth of 1.7 per cent in the previous quarter.
“In the UK, whilst overall grocery market growth was subdued, we outperformed in both sales and volume terms . . . as we made further investments in range, price and loyalty,” it said.
The slowdown partly reflects a tough comparison with the same quarter last year, when Britain enjoyed hot weather and major events including a royal wedding.
In Tesco’s second quarter, the year-on-year comparison for the sector will not ease, given hot weather and sporting events last year, including the soccer World Cup, which boosted demand.
Prior to Thursday’s update, analysts were on average forecasting operating profit before exceptional items of £2.48 billion for Tesco’s 2019-20 year, up from £2.21 billion in 2018-19.
Shares in Tesco, up 20 per cent so far this year, closed Wednesday at 227.4 pence, valuing the business at £22.3 billion. – Reuters
