J Sainsbury (LON:SBRY) is expected to report a rise in sales when it updates investors on its full-year performance next week. The grocer’s results will come after blue-chip rival Tesco (LON:TSCO) recently delivered a rise in annual sales and profits.
Sainsbury’s share price has been subdued in London in today’s session, having given up 0.41 percent to 267.50p as of 13:40 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.92 percent higher at 7,489.63 points. The group’s shares have given up a little over two percent of their value over the past year, as compared with an over three-percent rise in the Footsie.
Sainsbury’s to report results
Sainsbury’s is scheduled to post its preliminary results on Wednesday and Proactive Investors reports that analysts at Jefferies expect the blue-chip grocer to report like-for-like sales growth, excluding fuel, of 1.4% for the year.
“Sainsbury’s historically has been successful in defending food market share; in more recent times this track record has weakened, reflecting a shift in discounters’ openings towards the south of England and a more effective Tesco,” the broker said, as quoted by the newswire.
Latest Kantar Worldpanel data
Sainsbury’s results will follow this month’s Kantar Worldpanel data which showed that the grocer’s market share had dropped 0.3 percentage points to 15.8 percent in the 12 weeks to March 25. The company’s sales, however, climbed 0.6 percent. Kantar further noted that Sainsbury’s had continued to move away from promotions, with only 32.7 percent of sales at the blue-chip grocer achieved while a product was on offer.
According to MarketBeat, Sainsbury’s currently has a consensus ‘hold’ rating and an average price target of 257.70p.