Tesco PLC
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|lw | LOCK|$>X | LOCK|^!&@C$z |
Tesco: Encouraging Gains Over the Christmas Period
No-moat Tesco reported its fiscal 2025 third-quarter and Christmas trading update, which included retail sales being up 3.1%. Sales in the UK and the Republic of Ireland were up 3.9% and 4.4%, respectively, and we were pleased to see market share gains in both regions. From a channel perspective, online sales were strong, with the UK and the Republic of Ireland reporting 10.8% and 17.1% growth, respectively. Booker sales declined 1.3% due to weakness in the fast-food and tobacco markets, partially offset by strength in catering, up 2.8%. Improving customer sentiment drove growth in Central Europe to the tune of 3.5%, and we expect this momentum to continue into the next fiscal year.
