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LONDON - Tesco, Britain's biggest supermarket group, on Friday maintained its profit guidance for the year as it reported a 4.6% rise in underlying UK sales in its first quarter, winning market share.
The retailer, which has an over 27% share of Britain's grocery market, kept its forecast for retail adjusted operating profit, its preferred profit measure, of "at least" 2.8 billion pounds ($3.6 billion) for its 2024/25 year, up from the 2.76 billion pounds made in 2023/24.
"Following another strong quarter, we're pleased to reiterate our guidance for the full year, with sales trends in line with our expectations and the business well-positioned for the months ahead," Chief Executive Ken Murphy said.
In contrast to Tesco's update, other recent UK retail data has been subdued, with wet weather and ongoing cost-of-living pressures denting consumer spending in May, particularly for larger ticket items such as furniture.
One survey published June 4 showed the weakest spending growth in more than three years - an outcome that did not chime with Prime Minister Rishi Sunak's message to voters ahead of a July 4 national election that the economy is rebounding.
($1 = 0.7850 pounds)
(Reporting by James Davey; editing by Sarah Young)