Tesco's UK sales growth slows in first quarter

Tesco reported a 1.8% rise in UK like-for-like sales for the first quarter, below forecasts, but maintained its full-year profit guidance and continued to gain market share.

Tesco, ​Britain's biggest food retailer, said ​on Thursday underlying UK ‌sales growth slowed ​in its first quarter but it continued to gain market share and left ‌its profit guidance for the full-year unchanged.

The impact of the Iran war on energy prices, with knock-on effects on consumer spending, is adding ‌to the challenges the UK retail sector and the wider ‌economy face. Tesco, which has an over 28% share of the British grocery market, said UK like-for-like sales rose 1.8% in the 13 weeks to May ⁠30 - ​below analysts' average ⁠forecast of 2.3% and compared to growth of 3.1% in the previous ⁠quarter.

"The conflict in the Middle East continues to create uncertainty for customers," ​Tesco said. The group was up against a tough comparative ⁠performance in the first quarter last year when UK like-for-like sales rose 5.1%, boosted ⁠by ​favourable weather.

Tesco kept its forecast for adjusted operating profit of £3.0 billion to £3.3 billion ($4.0-$4.4 billion) for its year to end-February ⁠2027, versus the £3.152 billion made in 2025/26. Analysts were on average forecasting ⁠profit of £3.25 ⁠billion for 2026/27 ahead of Thursday's update.

Shares in Tesco have increased 15% over the last year. ($1 = ‌0.7517 ‌pounds)