Tesco expects profit jump as shoppers spend again

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8 個月前

STORY: Tesco reckons it’s on course to ring up another rise in profit.

Britain’s biggest retailer on Wednesday reported an 11% jump in earnings for the year.

Profit hit about $3.5 billion - slightly ahead of guidance.

Tesco says it won new customers, with its market share edging above 27%.

Among other reasons, it’s been cutting prices to match discount supermarket chain Aldi.

The retailer says it also sees signs of consumers feeling more confident as pressure from inflation eases off.

Boss Ken Murphy said falling energy prices and strong employment levels had helped underpin demand.

That chimes with recent data, which showed rising confidence among consumers over the outlook for their finances.

Tesco now forecasts a further rise in adjusted operating profit to at least $3.55 billion for the coming year.

The firm will also do almost $1.3 billion in new share buybacks, having already done close to twice that amount.

Tesco shares were up around 1% in early trades on Wednesday.