Tesco upgrades profit outlook on rising Christmas sales

Supermarket giant Tesco has become the latest retailer to upgrade its annual outlook as it said a strong Christmas performance would help it notch up higher-than-expected retail earnings.

By Greg Wright
Thursday, 13th January 2022, 7:51 am
Updated Thursday, 13th January 2022, 7:52 am

The UK’s biggest grocery chain reported a 0.3% rise in like-for-like sales over the six weeks to January 8 when compared with a year earlier, when trade was boosted by coronavirus lockdown restrictions.

On a two-year basis, it saw UK festive sales jump 8.8%.

Third-quarter figures showed UK like-for-like sales lifting 0.2% while the wider group saw growth of 2.4% in the three months and a 3.2% increase over the festive period to January 8.

Sign up to our daily newsletter

Supermarket giant Tesco has become the latest retailer to upgrade its annual outlook as it said a strong Christmas performance would help it notch up higher-than-expected retail earnings.

The group said the better-than-expected trading has put it on track to deliver full-year retail operating profits slightly above its previous guidance of between £2.5 billion and £2.6 billion – its second upgrade in four months.

It comes after a slew of retail upgrades on Wednesday, with close rival Sainsbury’s lifting its profit outlook, helped by a 0.1% sales rise over the six weeks to January 8.

Tesco cheered its strongest market share in the UK for four years.

Ken Murphy, chief executive of Tesco, said: “Despite growing cost pressures and supply chain challenges in the industry, we continued to invest to protect availability, doubled down on our commitment to deliver great value and offered our strongest ever festive range.

Read More

Read More
How did the major supermarkets perform over Christmas 2021?

“This put us in a strong position to meet customers’ needs as, once again, Covid-19 led to a greater focus on celebrating at home.

“As a result, we outperformed the market, growing market share and strengthening our value position.”