Tesco PLC (LSE:TSCO) held its full-year guidance steady despite what it called an "intensely competitive" grocery market, as it turned in a first-quarter update that showed stronger like-for-like sales growth than the past year. LFL sales were up 4.6% to £16.4 billion for the 13 weeks to 24 May 2025, led by 5.5% growth in Ireland and 5.1% growth for the rest of the UK.
Tesco PLC (LSE:TSCO) is expected to report a 4.6% increase in UK like-for-like sales for the first quarter of fiscal 2026 on Thursday (June 11), according to a research note from Citi. This projection is above the 3.6% consensus estimate from Visible Alpha and reflects strong consumer demand over March, April, and May, as indicated by data from Kantar.
Tesco PLC (LSE:TSCO) will deliver a first-quarter trading update on Thursday 12 June, with investors watching closely for signs of how the UK's largest supermarket is navigating an increasingly competitive grocery market. In April, Ken Murphy, chief executive of the FTSE 100-listed grocer, warned that profits will fall this year in as he issued guidance that was seen as cautious but still aggressive.
Citi has described Tesco PLC's (LSE:TSCO) latest executive changes as a modest positive, highlighting strong succession planning and renewed focus on higher-margin income streams. The reshuffle is expected to have a neutral to slightly positive impact on the shares.
Shoppers may be feeling the squeeze, but Britain's supermarket giants are holding their ground. According to a new note from RBC Capital Markets, Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) remain the best bets among the traditional “Big Four” grocers, despite fierce competition from discounters Aldi and Lidl.
Upgraded Tesco (TSCDY) to a buy rating due to improved fundamentals and attractive valuation, despite conservative FY26 guidance. Strong cost management and pricing strategy led to 8.6% y/y net income growth and increased market share in FY25. Retail media and data monetization efforts are scaling rapidly, potentially boosting earnings with high-margin revenue streams.
Tesco PLC (LSE:TSCO) shares climbed 4% on Friday, with Sainsbury's up 3%, as investors chose to look beyond a cautious profit outlook and instead focused on the sector's reputation for resilience in tough economic conditions. The gains helped reverse some of the declines seen earlier in the week after Tesco warned of the potential for lower profits in the year ahead.
Tesco's Aldi price matching initiative is pushing it further into the cutthroat world of discount grocers. The decline in operating profit for guidance despite ambitious cost-cutting plans, implies that pricing is going to get negative in the UK, despite remaining inflation. The structure for the business is toughening, and we'd start looking at better positioned bets, possibly like Kroger, which shares a similar valuation.
The grocer said it expects to report lower profit for its fiscal year as Asda and other rivals ramp up efforts to gain market share.
Tesco PLC (LSE:TSCO) reported a 10.6% growth in underlying profit for the past year and a £1.45 billion share buyback, but said profits are likely to fall this year. The UK's largest supermarket's new outlook suggested profits could decline up to almost 14% amidst a “further increase in the competitive intensity of the UK market” in the last few months, likely to be a reference to Asda's turnaround in recent months.
Tesco reports full-year results on Thursday, giving Britain's biggest supermarket group a platform to respond to rival Asda's move to lower prices that sent shares in the listed grocers tumbling.
Tesco PLC (LSE:TSCO) shares had been on the slide in the run-up to its final results on Thursday 10 April, though have picked up strongly after sinking to a seven-month low last month. On Thursday, while others were sinking under the weight of US tariff worries, shares in the UK's biggest supermarket were up over 4%.