Tesco Comparable Sales Climb Over Christmas Period; Backs Fiscal Year 2021 View

By Adria Calatayud

Tesco PLC said Thursday that comparable sales rose during the key Christmas period, supported by strong food and online sales, and reiterated its guidance for fiscal 2021 as a whole.

The U.K. grocer said retail like-for-like sales--excluding fuel sales and value-added tax--were up 5.4% during the six weeks to Jan. 9. In the U.K., Tesco's like-for-like sales were up 8.1% over the Christmas period, accelerating from a 6.7% rise for the third quarter ended Nov. 28.

Online sales in the U.K. for the 19-week period including the third quarter and Christmas grew 80%, the company said.

Group sales for the 19 weeks to Jan. 9 were 19.91 billion pounds ($27.15 billion), up 5.6% on a comparable basis, Tesco said. Sales from the company's bank operations fell 28% in the period.

The company said it now expects to book additional coronavirus-related costs for the full year of GBP810 million, which is GBP85 million higher than its previous estimate. However, this is being offset by strong sales momentum, it said.

Tesco said it continues to expect retail operating profit for the year to February 2021 to be at least the same level as in fiscal 2020 on a continuing operations basis, and a loss for its bank of between GBP175 million and GBP200 million for fiscal 2021.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

January 14, 2021 02:44 ET (07:44 GMT)

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