Tesco poised to unveil strong sales figures as turnaround continues
Tesco is expected to continue along the road to recovery by posting strong sales figures when it updates the market this week.
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.