Sainsbury’s has reported a sales increase of 4.2 per cent year-on-year (YoY) for the first quarter of fiscal 2025 (Q1 FY25), covering the 16 weeks leading up to June 22, 2024. However, the general merchandise and clothing segment experienced a decline of 4.3 per cent.

The performance in general merchandise and clothing reflected an improvement in the clothing trend, which was offset by weaker seasonal general merchandise sales. Notably, there was a positive improvement in clothing sales momentum, particularly in womenswear. This was attributed to a renewed focus on core ranges, though the impact of unseasonal weather in recent weeks tempered overall gains.

The total retail sales excluding fuel rose by 2.6 per cent, with like-for-like sales (excluding fuel) increasing by 3 per cent, the company said in a press release.

The company continues to expect an FY25 retail underlying operating profit of between £1.01 billion (approximately $1.28 billion) and £1.06 billion (approximately $1.34 billion). This represents growth of between five per cent and ten per cent compared to FY24. Additionally, Sainsbury’s anticipates generating at least £500 million of retail free cash flow.

“We are pleased with our market-beating grocery performance and the early progress we’re making against our Next Level Sainsbury's plan. We’ve been winning from competitors every month for 15 months, as more and more people are choosing Sainsbury's. We are laser focused on delivering the best combination of value and quality in the market,” said Simon Roberts, chief executive of Sainsbury.

Fibre2Fashion News Desk (DP)