Sainsbury's: sales gain momentum; shares rise
(CercleFinance.com) - British retailer Sainsbury's on Wednesday reported an improved sales growth momentum across all areas of its business and gave an upbeat outlook, which has sent its shares up sharply in London.
Sainsbury's said its like-for-like sales, excluding fuel, fell 0.2% in the 12 weeks to 21 September, its fiscal second quarter.
In all, second quarter retail sales inched up 0.1%, excluding fuel.
In its statement, Sainsbury's said it benefited from stronger trading across general merchandise and clothing, noting further improvement in its performance relative to the market, particularly in grocery, where sales increased by 0.6%.
The supermarket group has focused on reducing prices on "everyday food" and grocery products, while expanding the range of "value" brands, which has proven to be very popular with customers.
Sainsbury's - which is hosting a Capital Markets Day in Southampton today - said it remains on track to deliver full year 2019/20 underlying profit before tax in line with consensus expectations, despite "highly competitive" markets and an "uncertain" consumer outlook.
The shares were up almost 2% in early trading today.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Sainsbury's said its like-for-like sales, excluding fuel, fell 0.2% in the 12 weeks to 21 September, its fiscal second quarter.
In all, second quarter retail sales inched up 0.1%, excluding fuel.
In its statement, Sainsbury's said it benefited from stronger trading across general merchandise and clothing, noting further improvement in its performance relative to the market, particularly in grocery, where sales increased by 0.6%.
The supermarket group has focused on reducing prices on "everyday food" and grocery products, while expanding the range of "value" brands, which has proven to be very popular with customers.
Sainsbury's - which is hosting a Capital Markets Day in Southampton today - said it remains on track to deliver full year 2019/20 underlying profit before tax in line with consensus expectations, despite "highly competitive" markets and an "uncertain" consumer outlook.
The shares were up almost 2% in early trading today.
Copyright (c) 2019 CercleFinance.com. All rights reserved.