Proactive Investors
28 May 2026, 10:47 UTC · 2h ago
Tesco faces slower first-quarter sales growth, says Citi
Source · https://www.proactiveinvestors.co.uk/companies/news/1093044
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Proactive Investors
28 May 2026, 10:47 UTC · 2h ago
Source · https://www.proactiveinvestors.co.uk/companies/news/1093044
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Story key points
4 claims · impact-rated
Citi has lowered its Q1 UK like-for-like sales growth forecast for Tesco to 2.2%, down from 4% and below the market expectation of 3%. — Lower-than-expected sales growth in the core UK market typically puts downward pressure on the stock price.
-0.40Citi expects Tesco's overall group retail like-for-like sales growth for the quarter to be 1.4%, significantly below the market forecast of 3.1%. — A wide gap between analyst projections and market expectations often leads to a negative price reaction upon official reporting.
-0.40Citi downgraded its forecast for Tesco's wholesale arm, Booker, expecting a 3.5% decline in like-for-like sales due to the loss of a major national retail contract. — The loss of a major contract is a fundamental negative development for the wholesale division's growth trajectory.
-0.30Citi maintained its full-year operating profit forecast of £3.28 billion, which is at the top end of Tesco's own guidance range. — Maintaining profit targets despite softer sales suggests resilience in margins or cost management, cushioning the sales miss.
+0.20Ticker attribution
Model heads
Citi downgraded Q1 sales growth forecasts and expectations for its wholesale arm, though full-year profit guidance remains intact.
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