- Like-for-like sales fall 4%.
- Grocery sales were down 2.4% from the prior year, but 8.7% ahead of pre-pandemic sales.
- Sainsbury’s expects underlying profit before tax of between £630 million and £690 million.
Sainsbury’s announced its trading statement on Tuesday morning, posting weaker performance in groceries, and total general merchandise.
However, shares of Sainsbury’s rose 1.87% despite the dismal report.
The supermarket reported like-for-like sales fell 4% for Q1 compared to the prior-year quarter. Meanwhile, total general merchandise tumbled 11.2% and Sainsbury’s supermarkets took the biggest hit, down 14.6% from the previous year’s Q1.
Grocery sales fell 2.4% however, were 8.7% ahead of pre-pandemic sales. So, it’s not all bad news…
Furthermore, the government has been putting pressure on firms to reduce prices for customers. Sainsbury’s Chief Executive Simon Roberts said they are “doing everything we can to keep prices low.”
Roberts continued “We’re working hard to reduce costs right across the business so that we can keep investing in these areas that customers care most about.”
Not an ideal situation for the supermarket chain.
In terms of its outlook, it remains unchanged. The company continues to expect FY22/23 underlying profit before tax of between £630 million and £690 million.
The above graph represents Sainsbury’s share price over the previous year. The last year has been difficult for the supermarket as inflation has impacted the company’s sales. Sainsbury’s shares are down 22% in 2022.