Share Prices & Company Research

Press Release

02 October 2019

Will Tesco transformation continue after Dave Lewis’ departure?

A positive set of results for supermarket giant Tesco has been overshadowed with news of chief executive Dave Lewis’ departure.

Mr Lewis, who has led the turnaround of Tesco’s fortunes since taking the helm during a turbulent time for the store in 2014, said the decision to step down in summer 2020 was “a personal one.”

It came on the morning the store announced a 6.7% rise in first-half profits to £494m.

Roy Kaitcer, Investment Manager at investment management and stockbroking firm Redmayne Bentley, said: “The results were slightly higher than expected and are a continuation of Tesco’s recovery. The strategy put in place over the last year to reduce costs, increase online capacity and expand in Asia, where it did well last year, seems to have worked for them.”

Mr Lewis took over as chief executive in the year Tesco was hit by an accounting scandal, where it was revealed the store had overstated its profits by £250m. In April 2015, the store announced a £6.4bn loss, the worst in its history.

Roy said: “Mr Lewis was obviously instrumental in the turnaround of Tesco. Investors will be hoping that these measures will be continued by Mr Lewis’ successor, Ken Murphy.”

Shares were down almost 3% to 233p when markets opened today (2nd October 2019) but rose by around 2% during early morning trading.

Ends

Please note, investments and income arising from them can fall as well as rise in value and you may lose some or all of the amount you have invested. Past performance and forecasts are not reliable indicators of future results or performance. This article is for information only and does not constitute a recommendation to buy or sell shares in Tesco.
 
 
 

 
Will Tesco transformation continue after Dave Lewis’ departure?
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.