Sainsbury’s first-quarter sales rose 2.7% to £9.2bn, excluding fuel, which was in line with market expectations. Growth was driven entirely by a 3.6% uplift in Grocery sales as the group gained market share from competitors.
General Merchandise and Clothing sales declined 3.7% (-1.3% expected) in the period due to a soft clothing market and reduced in-store space allocation in favour of Groceries. Argos sales fell 0.5% (-3.7% expected), as an uplift in Home & Toys and fan sales partly offset an unfavourable shift in product mix towards lower-priced items.
Full-year guidance was maintained, with underlying operating profit expected to land in the £975-1,075mn range. Retail free cash flows are still expected to exceed £500mn.
The shares rose 1.0% in early trading.
J Sainsbury key facts
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