Shares in Tesco (LON:TSCO) have jumped in London this morning as the blue-chip grocer posted a rise in sales for the third quarter as well as for the crucial Christmas period. The update follows results of FTSE 100 rivals Sainsbury’s (LON:SBRY) earlier in the week.
As of 08:51 GMT, Tesco’s share price had added 1.13 percent to 214.20p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index having fallen into the red and currently standing 0.43 percent lower at 6,876.64 points.
Tesco sees sales rise
Tesco announced in a statement this morning that its UK and Ireland Christmas like-for-like sales had surged 2.6 percent, outperforming the UK market in both volume and value terms. Over the third quarter, the grocer’s UK and ROI sales rose 1.9 percent.
Overall, group sales climbed 0.5 percent in the third quarter, and picked up at 1.5 percent over the Christmas period. Reuters noted in its coverage of the news that analysts had forecast a rise of between one percent and 1.5 percent for the six weeks to January 5.
Tesco further said that it was ‘confident’ in the outlook for the full year and was ‘firmly on track’ to deliver the ambitions outlined in October 2016.
Analysts weigh in
“One has to say that over this key trading period Tesco has emerged the major retail winner,” said Markets.com analyst Neil Wilson, as quoted by Proactive Investors. “The Booker acquisition continues to look to have been a smart move, with growth there of around 10 percent helping to boost group performance.”
Wilson further noted that the retailer under chief executive “Dave Lewis is not the same business it used to be and this is a good thing for investors”.
As of 09:15 GMT, Thursday, 10 January, Tesco PLC share price is 216.81p.