Tesco's Recovery Could be a Good Sign for U.K. Retail Spending
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Version 0 of 1. Tesco plc's (TSCDY) recovery and return to dividend have put other supermarkets in the U.K. on the back foot but could be a good sign for U.K. retail. Britain's No. 1 supermarket on Wednesday said it had restored its dividend for the first time in nearly three years after posting better-than-expected first-half results. Tesco shares were down 2.26% in morning trading, to change hands at 185.6 pence but the stock has gained around 15% over the past three months. Tesco said pre-tax profits for the six months ending in August came in at £562 million ($746 million), firmly ahead of the Street consensus of £496.3 million. Sales for the six month period rose 3.3% to £25.2 billion, the company said, while overall revenues rose 3.7% to £28.4 billion, modestly ahead of the FactSet consensus of £28.165 billion. The group also said it would resume an interim dividend -- of 1 pence per share -- for the first time since December 2014 when the company found itself embroiled in an accounting scandal. Other supermarket shares were also on the back foot Wednesday morning, with Britain's No. 2 supermarket J Sainbury plc (JSAIY) down 0.36% at 246.6 pence, adding to a three-month loss of 1.36% compared with a gain of 9.7% for the FTSE 350 Food & Drug Retailers Index over the same period. No. 4 supermarket Wm Morrison Supermarket plc (MRWSY) was down 0.59% to change hands at 235.20 pence a share, while online supermarket Ocado Group plc (OCDDY) shares were marked 0.30% lower at 298.8 pence. |