Sainsbury’s beats Q1 sales expectations
6 July 2021 | 0
Sainsbury’s has beaten expectations for Q1 sales, despite growth slowing sharply compared to last year, when shoppers were anxious to stock up at the start of the first Covid-19 lockdown.
The retailer reported that like-for-like sales, excluding fuel, increased by 1.6% during the 16 weeks to 26 June. This was markedly better than analysts’ average forecast of a fall of 1.7% and a rise of 11.3% in the previous quarter.
Sainsbury’s reported sales of grocery, general merchandise and clothing were all higher than its expectations; results which saw the retailer outperform competitors and grow market share.
However, the retailer added it had further tough comparables ahead as pandemic restrictions continue to ease and customer behaviour normalises.
Sainsbury’s said it expected to report underlying profit before tax of at least £660 million in the 2021-22 year, up from £356 million in 2020-21.
The Irish Times reports shares in Sainsbury’s are up 23% so far this year, boosted by bid speculation.
That started in April when Czech billionaire Daniel Kretinsky increased his stake to just below 10%. This has been further driven during the past two weeks by a bid battle for rival Morrisons.