{"id":46668,"date":"2026-01-08T11:35:03","date_gmt":"2026-01-08T11:35:03","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/08\/tesco-shares-slide-as-like-for-like-sales-miss-forecasts-despite-christmas-boost\/"},"modified":"2026-01-08T11:35:03","modified_gmt":"2026-01-08T11:35:03","slug":"tesco-shares-slide-as-like-for-like-sales-miss-forecasts-despite-christmas-boost","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/08\/tesco-shares-slide-as-like-for-like-sales-miss-forecasts-despite-christmas-boost\/","title":{"rendered":"Tesco shares slide as like-for-like sales miss forecasts despite Christmas boost"},"content":{"rendered":"
<\/div>\n

Shares of Tesco fell more than 5% on Thursday after the UK\u2019s largest supermarket reported like-for-like sales growth that came in below market expectations, overshadowing a solid performance over the crucial Christmas trading period.<\/p>\n

The retailer said the group’s like-for-like sales rose 3.1% in its third quarter, while sales over the Christmas period increased 2.4% year on year.<\/p>\n

Both figures were below company-compiled consensus estimates of 3.6% and 3.4% respectively, according to RBC. <\/p>\n

The miss weighed on investor sentiment despite signs of resilience in food spending.<\/p>\n

Growth driven by food and market share gains<\/h2>\n

Tesco said sales in the 13 weeks to November 22 rose 4%, ahead of the Christmas rush, while festive demand helped lift its share of the UK grocery market. <\/p>\n

According to Worldpanel data, Tesco\u2019s market share increased to 28.7% in the three months to December 28 and climbed further to 29.4% during December, its highest level in more than a decade.<\/p>\n

Food sales were up 5.2% over the Christmas period, driven by strong demand for fresh produce and party food. <\/p>\n

Tesco chief executive Ken Murphy said he was \u201cdelighted\u201d with the retailer\u2019s Christmas performance, noting particularly strong growth in the Tesco Finest premium range, where sales jumped 13%.<\/p>\n

The company said the robust festive trading meant it remained on track to deliver full-year operating profits at the upper end of its previously upgraded guidance of between \u00a32.9 billion and \u00a33.1 billion. <\/p>\n

Tesco had raised its profit outlook in October following a steady first half.<\/p>\n

Muted reaction despite festive boost<\/h2>\n

Despite the upbeat tone on profits, analysts were cautious on the overall results.<\/p>\n

Kathleen Brooks, research director at XTB, said the numbers were not a \u201croaring success\u201d given the shortfall against expectations earlier in the quarter.<\/p>\n

She noted that while third-quarter like-for-like sales growth lagged forecasts, the pick-up over Christmas helped protect earnings and market share. <\/p>\n

Online sales rose more than 11%, adding to the sense that Tesco remains well positioned despite a challenging consumer environment.<\/p>\n

Brooks added that Tesco\u2019s shares had been largely static in recent weeks as investors waited for a clearer catalyst, and that while the update may not excite markets immediately, it could support sentiment over time by showing the grocer can defend profits in a constrained economy.<\/p>\n

“Tesco is up against higher expectations, so this light period of growth–and below-par contribution from its Booker segment–will be on investors’ minds,” Richard Hunter, head of markets at Interactive Investor, said.<\/p>\n

“Also, the company didn’t increase its adjusted operating profit guidance, which was disappointing for investors,” he added.<\/p>\n

Mixed consumer sentiment weighs on outlook<\/h2>\n

Murphy said UK consumer sentiment remained mixed, with a growing divide between households that were still spending freely and those under significant financial pressure.<\/p>\n

\u201cThere\u2019s no doubt that consumer sentiment is mixed,\u201d he told reporters, adding that while many shoppers were counting every penny, resilient employment was helping to underpin spending. <\/p>\n

He said consumers continued to prioritise food over discretionary items and still found room to enjoy Christmas.<\/p>\n

That trend was echoed across the sector. <\/p>\n

Marks & Spencer reported a 5.6% rise in underlying food sales over the Christmas quarter, but its clothing, home, and beauty division saw sales fall 2.9%.<\/p>\n

Primark owner Associated British Foods said the UK clothing market was \u201cdifficult\u201d, while Greggs warned of subdued consumer confidence and guided towards flat profits this year.<\/p>\n

December\u2019s solid food sales provided some relief for Britain\u2019s major retailers, but analysts remain wary about the outlook. <\/p>\n

Sticky inflation, cautious consumers, and intense competition are expected to continue shaping trading conditions into 2026.<\/p>\n

The post Tesco shares slide as like-for-like sales miss forecasts despite Christmas boost<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Tesco fell more than 5% on Thursday after the UK\u2019s largest supermarket reported like-for-like sales growth that came in below market expectations, overshadowing a solid performance over the crucial Christmas trading period. The retailer said the group’s like-for-like sales rose 3.1% in its third quarter, while sales over the Christmas period increased 2.4% <\/p>\n","protected":false},"author":1,"featured_media":46669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-46668","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46668"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46668\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46669"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}