Sainsbury's sales beat forecasts, highlights tough market

Sainsbury's (SBRY.L), Britain's second biggest supermarket group, saw its sales growth accelerate in its latest quarter, helped by inflation and a spate of warm weather, though it cautioned trading conditions remained tough.
Sainsbury's and its major rivals - market leader Tesco (TSCO.L), Asda (WMT.N) and Morrisons (MRW.L) - are grappling with the rapid growth of German discounters Aldi and Lidl and having to deal with more expensive food imports due to the post-Brexit vote fall in the value of the pound.
"The market is competitive and we continue to manage cost price pressures closely," Chief Executive Mike Coupe said.
"Our strategy is delivering and we are well placed to navigate the external environment."
Sainsbury's said group retail like-for-like sales rose 2.3 percent, excluding fuel, in the 16 weeks to July 1, its fiscal first quarter.
That compares with analysts' average forecast of a rise of 2 percent and growth of 0.3 percent in the previous quarter.
This was the first quarter following the Home Retail purchase for which the group did not issue separate like-for-like sales data for Sainsbury's and Argos.
Sainsbury's said total grocery sales rose 3.0 percent, while transactions at the supermarket were up 1.9 percent. General merchandise sales increased 1.0 percent
Prior to Tuesday's update analysts were on average forecasting a pretax profit of 572 million pounds ($741 million) for 2017-18, down from 581 million in 2016-17. Such an outcome would represent a fourth straight year of profit decline.The group said online grocery sales increased 8 percent, while sales at convenience stores were up 10 percent.

Shares in Sainsbury's, up 5 percent over the last year, closed Monday at 249 pence, valuing the business at 5.5 billion pounds.
Sainsbury's sales beat forecasts, highlights tough market Sainsbury's sales beat forecasts, highlights tough market Reviewed by Alexander Von Stern on 02:21:00 Rating: 5