Tesco poised to unveil strong sales figures as turnaround continues
The supermarket giant, which has been undergoing a turnaround under chief executive Dave Lewis, is set to report its third-quarter and Christmas trading figures on Thursday.
Analysts at UBS are forecasting a 2.4 per cent increase in like-for-like sales over both the festive period and the third quarter.
Tesco is experiencing strong momentum relative to its peers and in October Lewis hailed a “significant milestone” after unveiling the first dividend payout for three years following a surge in half-year profits and sales. The group posted a 27 per cent rise in underlying earnings to £759 million for the six months to 26 August after it notched up its seventh consecutive quarter of increasing sales.
Sreedhar Mahamkali, analyst at Macquarie Capital, said: “We expect a decent Christmas update from the sector, with Tesco continuing to report the best like-for-likes in the sector.
“A key feature for a considerable period of time in Tesco’s recovery is the strong and consistent growth in grocery sales over the past several months.”
The group was further buoyed in December when its £3.7 billion takeover of wholesale group Booker was given the final all-clear by the competition watchdog.