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| 'Solid' Tesco sees sales pick up | 'Solid' Tesco sees sales pick up |
| (10 minutes later) | |
| Supermarket chain Tesco says it has made a "solid" start to its financial year, with first quarter like-for-like sales up 4.3% in the UK. | Supermarket chain Tesco says it has made a "solid" start to its financial year, with first quarter like-for-like sales up 4.3% in the UK. |
| The sales rise was better than the 3.7% growth Tesco saw in the previous quarter, but was lower than growth reported by other supermarket chains. | The sales rise was better than the 3.7% growth Tesco saw in the previous quarter, but was lower than growth reported by other supermarket chains. |
| Tesco boss Terry Leahy said the firm was maintaining strong "momentum in a challenging economic climate". | Tesco boss Terry Leahy said the firm was maintaining strong "momentum in a challenging economic climate". |
| The firm added there had been a strong response to its relaunched Clubcard. | The firm added there had been a strong response to its relaunched Clubcard. |
| 'Unusually upbeat' | |
| In overseas markets, sales growth in Asia was 43.8%, helped by favourable exchange rates, and in the US sales were up by 174%. | In overseas markets, sales growth in Asia was 43.8%, helped by favourable exchange rates, and in the US sales were up by 174%. |
| Tesco also said it was pleased by the performance of last year's acquisitions - Tesco Personal Finance in the UK, which was previously run by Royal Bank of Scotland, and Homever stores in Korea. | Tesco also said it was pleased by the performance of last year's acquisitions - Tesco Personal Finance in the UK, which was previously run by Royal Bank of Scotland, and Homever stores in Korea. |
| Richard Hunter, Head of UK Equities at Hargreaves Lansdown Stockbrokers, said: "Its international businesses in particular continue to bolster overall performance, contributing a 20% rise in sales over the period. | |
| "Asian sales growth was particularly strong, whilst the US business also saw an exponential improvement. | |
| "Back in the UK, there has been a strong response to the relaunch of the Clubcard scheme, whilst the accompanying management statement was unusually upbeat given the current environment." | |
| UK rivals | |
| However, Tesco's UK sales growth for the three months to 30 May was behind that of competitor Morrisons, which recently reported a 7.3% rise in first quarter sales. | However, Tesco's UK sales growth for the three months to 30 May was behind that of competitor Morrisons, which recently reported a 7.3% rise in first quarter sales. |
| And in May, Asda, the UK supermarket owned by Wal-Mart, saw its quarterly like-for-like sales grow by 8.4%. | And in May, Asda, the UK supermarket owned by Wal-Mart, saw its quarterly like-for-like sales grow by 8.4%. |
| In April, Tesco reported underlying annual pre-tax profits of £3.13bn, an improvement of 10% on the previous year, and the highest on record for a UK retailer. | In April, Tesco reported underlying annual pre-tax profits of £3.13bn, an improvement of 10% on the previous year, and the highest on record for a UK retailer. |
| At that time it said its sales topped £1bn a week for the first time, with group sales coming in at £59.4bn. | At that time it said its sales topped £1bn a week for the first time, with group sales coming in at £59.4bn. |