Tesco shares are at the top of the FTSE 100 this morning, after it reiterated its full-year guidance in Friday’s trading update.
The UK’s largest supermarket firm revealed total retail sales grew by 3.4% to £15.3bn ($19.5bn) in the 13 weeks to 25 May, compared with the same period last year.
Tesco says it is growing its UK market share faster than all its “key competitors”, with food sales up 5% in the quarter.
The retailer reiterated its guidance for the full year, expecting a retail adjusted operating profit of at least £2.8bn and retail free cash flow of between £1.4bn and £1.8bn.
“Tesco has done exceptionally well to grow market share given rising competition. Its full-line offering sets it apart from the likes of Aldi, and its product proposition puts it ahead of other big names,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
“Moving forwards, investors will want to see further growth kicked out from wholesaler Booker — as well as a clearer understanding on what the next chapter looks like for food.”
By Yahoo Finance UK reporter Pedro Goncalves
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