Tesco holds guidance despite slower sales growth in Q1

(Sharecast News) - Tesco held annual guidance despite a slowing of like-for-like sales in the first quarter as customers shunned higher prices and cheaper competitors fought for market share. Sales in the 13 weeks to May 30 rose 1.8% compared with "an exceptionally strong prior-year period supported by record-breaking weather and competitor disruption", Tesco said in a trading statement, adding that the war in Iran and Lebanon "continues to create uncertainty for customers".

This compared with a 4.2% rise in sales on the same basis in the fourth quarter.

Group sales rose 1% on a LFL basis to £16.83bn excluding value-added tax and fuel. Surging petrol prices due to the war saw the chain lift fuel sales by 19.5% to £1.7bn during the quarter.

The supermarket chain still expects annual adjusted operating profit of between £3.0bn and £3.3bn.

Reporting by Frank Prenesti for Sharecast.com