(AOF) – The two giants of the British distribution, Tesco and Marks & Spencer (M&S), suffered the same fate on the stock market on Thursday: their shares fell by 1.03% to 289.25 pence and 5.55% respectively at 238.95 pence on the London Stock Exchange. However, they both recorded good performances during the holiday season, allowing them to revise their outlook upwards. But obviously, this is not enough for investors.
Tesco, the UK’s largest retailer, saw sales grow 3.2% year-on-year around Christmas time, and 8.7% over the pre-covid period. Sales for the third quarter were up 2.4% year-on-year and 7.9% over two years.
“Due to stronger than expected sales to date, we now expect retail operating profit to be slightly above the high end of our previous forecast of £ 2.5 billion to £ 2.6 billion.” , Tesco said. The group also expects an operating profit of its Bank of 160 million and 200 million pounds, due to more favorable economic forecasts which should enable it to recover the provisions for expected credit losses.
For its part, M&S published sales over the last 13 weeks of 2021 up 12.4% over two years in food and 3.2% in clothing and consumer products. The market was forecasting growth of 10% and 0.9% respectively.
Thanks to this good performance, the distributor announced that its adjusted profit before tax will be at least 500 million pounds in 2021, against a previous estimate of about 500 million. A forecast that JPMorgan and Credit Suisse deemed “disappointing”, reports Reuters, given the good business momentum and investor expectations.
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