Sainsbury’s is making “good process”, says CEO Mike Coupe
The past year hasn’t been great for supermarkets but Sainsbury’s today upgraded its profit forecast.
The supermarket giant reported its seventh consecutive quarter of falling underlying sales but chief executive Mike Coupe insisted Sainsbury’s is making “good process”.
The supermarket group is expecting full-year underlying profits to beat analysts’ forecast of £548m. Last year, full-year underlying profits for Sainsbury’s stood at £681m.
Total sales excluding fuel were up 0.3%. Like-for-like sales, which exclude the effect of new store space, fell 1.1% excluding sales of fuel.
Sainsbury’s CEO Mike Coupe said: “Both volume and transactions grew as the decline in average basket spend in supermarkets continued to stabilise.
“Whilst the market is clearly still challenging, with food deflation impacting many categories, we are making good progress on delivering our strategy.”
Bernstein analysts said that the “results represents a change of tone for Sainsbury’s”.
“It has tried to take a cautious message up to now, that it will go “toe to toe” with whatever price investment anyone else makes. That it is talking up guidance is now showing they are more confident in their strategic position.”
Take a look at Sainsbury’s figures: