Tesco: like-for-like growth accelerates in second quarter

(CercleFinance.com) - Tesco reported an acceleration in its core UK sales in the second quarter, although this failed to lift the Tesco share in London this Wednesday.


Britain's biggest supermarket group reported a 4.2% rise in UK and Ireland like-for-like sales over the past quarter, up from 3.5% growth in the previous quarter.

Tesco, the world's number 3 retailer behind US group Walmart and France's Carrefour, said that pre-tax profit reached 564 million pounds over the first half, up from 553 million pounds a year ago.

The group increased its interim dividend by 67% to 1.67 pence.

Despite this good news, Tesco shares are currently down 6.3% at 220.3 pence, underperforming a 0.8% fall in the STOXX Europe 600 Optimised Retail index and valuing the business at about 23 billion pounds.

Its shares have risen by 5.3% so far this year.

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