Sainsbury's reports slower sales as Iran war continues to impact

(Sharecast News) - UK supermarket chain Sainsbury's held annual guidance despite slower first quarter sales as the war in Iran and Lebanon continued to cause uncertainties for customers. Like-for-like sales excluding food in the in the 16 weeks to June 20 rose 2.1%, down from the previous quarter's 3.1% and estimates of 2.7%.

The company still expects to deliver total underlying operating profit of between £975m - £1.075bn and retail free cash flow of more than £500m.

The company said it would make "make deliberate, balanced choices to sustain our strong competitive position" and expected to continue to outperform the grocery market.

"We have had an encouraging start to the year but the impact of the conflict in the Middle East on our customers and our business remains uncertain," Sainsbury's said in a trading statement on Tuesday

Reporting by Frank Prenesti for Sharecast.com