Tesco Profits Surge Amid Competitive Heat and Hot Weather Boost

Tesco, the UK's largest supermarket chain, has raised its profit forecast for the year, citing gains in market share and a favorable summer. The company now expects operating profits between £2.9 billion and £3.1 billion, attributing success to strong customer response and extended good weather conditions.

Tesco, the leading supermarket group in the UK, has revised its profit forecast upwards for the fiscal year, buoyed by a standout summer and increased market share.

The retailer, which now holds 28.4% of the British grocery market, anticipates adjusted operating profit for 2025/26 to hit between £2.9 billion and £3.1 billion. This marks an improvement from its prior estimate of between £2.7 billion and £3.0 billion, having recorded an operating profit of £3.13 billion in the previous year.

The first half of the year saw UK like-for-like sales climb by 4.9%, a slight dip from the 5.1% growth in the first quarter. Tesco noted that while competitive pressures remain high, effective customer strategies and prolonged favorable weather conditions have mitigated investment costs.

(With inputs from agencies.)