admin British supermarket giant Tesco has upped its full-year profit guidance after reporting a robust first half of the year, despite sales at its Home and Clothing division declining.
The retailer reported a 8.9 percent increase in group revenue in the six months to August 26, reaching 30.7 billion pounds.
That came as its profit surged to 929 million pounds from 252 million pounds.
In its home UK market, like-for-like sales rose by 8.7 percent in the first half, which was driven by a “strong performance across all formats and channels”.
However, things were looking less bright at its Home and Clothing department – which comprises around 7 percent of UK sales – where sales declined 4.8 percent.
It said that drop was primarily linked to the impact of strategic ranging decisions, including exiting and reducing low returning categories such as large electricals and adult footwear.
Excluding those factors, sales were broadly flat, the retailer said.
“We outperformed the rest of the market in Clothing across the half and further improved our value perception against our key competitors,” it added.
Based on its first-half results, Tesco has raised its full-year adjusted operating profit to between 2.6 billion pounds and 2.7 billion pounds.
