UK retailer Tesco's like-for-like retail sales rise 6.6% in Q3 FY24

16 Jan '24

2 min read

Pic: Roger Utting - stock.adobe.com

Insights

Tesco reported strong Q3 FY24 results with a 6.6 per cent YoY growth in like-for-like retail sales.
UK and ROI saw impressive increases of 7.9 per cent and 8.3 per cent respectively.
The company anticipates a retail adjusted operating profit of £2.75 billion for FY24, exceeding previous guidance and generating around £2 billion in retail free cash flow.

Tesco, a British multinational firm, has reported a 6.6 per cent year-on-year (YoY) growth in its like-for-like retail sales in the third quarter of fiscal 2024 (Q3 FY24), covering the 13 weeks leading up to November 25, 2023. In the UK and Republic of Ireland (ROI), Tesco achieved a 7.3 per cent growth in like-for-like sales, with the UK alone recording a robust 7.9 per cent increase, and the ROI following closely with 8.3 per cent. Central Europe, however, saw a slight decline of 1.4 per cent.

Breaking down the UK channel like-for-like sales growth, the large format stores reported a substantial 7.8 per cent increase, while convenience stores saw a solid 4.5 per cent rise. The online segment showed exceptional performance with a 12.3 per cent growth, the company said in a media release.

Looking ahead to fiscal 2024, Tesco now expects retail adjusted operating profit to reach approximately £2.75 billion, surpassing its previous guidance range of £2.6 billion to £2.7 billion. This positive forecast indicates strong retail free cash flow generation of around £2.0 billion.

“We put a strong focus on quality and innovation, with over 550 new and improved festive products. Over 18 million customers took the opportunity to treat themselves by shopping from our Finest range, which saw sales growth of nearly 17 per cent,” said Ken Murphy, chief executive.

Fibre2Fashion News Desk (DP)

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