Tesco clothing like-for-like sales grow 1.7 percent in Q1

Daniel Fowler
June 18, 2018

In a trading update for the 13 weeks ended 26 May, clothing like-for-like sales were up 1.7% with full price sales participation in stores increasing by 140 basis points year-on-year to over 87%.

Shares in Tesco (LON:TSCO) have advanced in today's session as Britain's biggest grocer updated investors on its first-quarter performance, posting a rise in like-for-like sales.

"This decision has been a very hard one to make, but it is an essential step towards establishing a more sustainable non-food offer and growing our business for the future", said Tesco chief executive Charles Wilson.

The supermarket said United Kingdom and Irish sales rose 3.5% in the most recent three months, its 10th consecutive quarter of growth.

Shares in Tesco rose as much as 3 percent after the group also said it was delighted with initial progress at wholesaler Booker, which it acquired in March, and was on track to deliver its medium-term financial targets.

That was a tenth straight quarter of growth and compared to analysts' forecasts in a range of up 1.7 percent to 2.5 percent and growth of 2.3 percent in the previous quarter.

Tesco now dominates Britain's supermarket sector by a clear margin, with a 27.7 percent market share, according to industry data.

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The Competition and Markets Authority approved Tesco's multibillion-pound takeover of Booker in December 2017.

'Our growth plans are on track and we are pleased with the momentum in the business, ' insists Lewis.

The supermarket's general merchandise sales dragged on total sales growth, although like-for-like clothing sales ticked up 1.7 per cent.

Booker's sales, included in their financial report for the first time, jumped 14.3 per cent following the deal's consolidation on 5 March this year.

Tesco had been forced to rebuild after a 2014 accounting scandal capped a downturn in trading.

Lewis had warned in a speech to business leaders three years ago that the government's approach on business rates, the minimum wage and apprenticeship levy was a potential "lethal cocktail" for the industry.

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