Tesco share price: Grocer returns to sales growth

on May 3, 2017
Updated: Oct 21, 2019
Listen

Tesco (LON:TSCO) has returned to grocery sales growth in the 12 weeks ended April 23, the latest Kantar industry figures have shown. The numbers are a boost for the blue-chip supermarket which recently posted a rise in full-year operating profits and recorded its first sales growth in the UK in seven years.

Tesco’s share price has slipped into the red in today’s session, having lost 0.57 percent to 181.95p as of 10:19 BST, slightly underperforming the broader London market, with the benchmark FTSE 100 index currently 0.22 percent worse off at 7,233.87 points. The group’s shares have added more than seven percent to their value over the past year, but have given up just under 12 percent in the year-to-date.

Kantar Worldpanel revealed in a statement today that the overall UK grocery market had grown by 3.7 percent, marking the fastest rate since September 2013. Tesco meanwhile returned to growth with sales up 1.9 percent after its performance was hit by a late Easter during the previous period. The company benefitted from its own label sales, which increased by six percent, growing across all price tiers – cheapest, standard and premium. The retailer’s share, however, fell by 0.5 percentage points to 27.5 percent.
The industry numbers come after Tesco recently updated investors on its full-year performance, revealing its profit before tax had dropped to £145 million in the financial 2016/17, from £202 million in the prior-year period, pressured by charges related to its accounting scandal in 2014. The grocer’s sales however surged 4.9 percent, while the group’s UK like-for-like sales came in 0.9 percent higher, marking the first reported full-year growth since 2009/10.
The 16 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 200.00p on the shares, with a high estimate of 260.00p and a low estimate of 140.00p. As of April 28, the consensus forecast amongst 22 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.
As of 10:42 BST, Wednesday, 03 May, Tesco PLC share price is 180.70p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Food & Beverage Retail Stock Market