Tesco: Solid Performance in the Core and Second Upgrade of Guidance in Fiscal 2024

Tesco announced its fiscal 2024 third-quarter and Christmas trading update that included retail sales up 6.4%. Sales in the U.K. and Republic of Ireland were up 7.5% and 7.3% respectively with Booker up 4%. Catering sales were up 3.5% and retail sales were up 4.1%. From a channel perspective, large stores continued to perform well with sales growing 7.5% in the period versus 4.5% sales growth for convenience stores and 11.5% sales growth for the digital channel, around 13% of U.K. sales. Tesco said it made strong market share gains in the U.K., up 15 basis points to 27.9%, and in Ireland, up 73 basis points to 24.5%, in the four weeks leading to Christmas.