Tesco share price

Tesco Plc warned profit will be squeezed this year as the U.K.'s biggest supermarket chain battles to keep prices low for consumers facing a cost of living ...

The grocer, along with rivals like Wm Morrison Supermarkets, is grappling with inflation that soared to a 30-year high last month, pinching household budgets even as input costs swell. Chief Executive Officer Ken Murphy pledged to keep costs in check to ensure shoppers don’t defect to discounters like Aldi and Lidl. Tesco Plc warned profit will be squeezed this year as the U.K.’s biggest supermarket chain battles to keep prices low for consumers facing a cost of living crisis.

Tesco lifted profits last year but the UK's biggest supermarket group has warned earnings will suffer this year as it prioritises price competitiveness in ...

Firm says 'significant uncertainties' weigh on business despite pre-tax profits jumping from £1.1bn to £2.2bn.

We have been really working hard to hold back the effect of that inflation. “It has been many years since we have seen living costs rise at the rate they are today. “Customers are looking at budgets and are already making trade-offs,” Murphy said. “Clearly, the external environment has become more challenging in recent months. As a result of uncertainty in the market, Tesco broadened its forecast of profits for this year to between £2.4bn and £2.6bn – less than the £2.84bn predicted by analysts. Total revenues for the UK’s biggest supermarket, which proved to be a pandemic winner by taking a share from rivals and boosting online sales, rose by 6% to £61.3bn as pre-tax profits jumped from £1.1bn to £2.2bn in the year to the end of 26 February.

Tesco just reported its FY22 earnings. Since then, the stock has dropped by 5%. So, here's why investors are bearish about the Tesco share price.

I believe that Tesco’s quality and massive market share in the sector is a unique selling point. Nevertheless, CEO Ken Murphy mentioned on the company’s earnings call that Tesco will be using its new-found cash to invest in its supply chains. As a result of this, Tesco decided to increase the wages of its workers by up to 6%. This could affect Tesco’s already narrow margins even further. The firm also cited “significant uncertainties in the external environment”, giving a £2.5bn forecast for its operating profits in FY23. This is lower than the average £2.8bn analysts were expecting, and is the main reason why the Tesco share price is down 5% at the time of writing. Unfortunately, this will also mean that its profit margins will most probably take a hit in the short-to-medium term. With over a 25% market share in the supermarket sector, Tesco (LSE: TSCO) is the UK’s biggest supermarket.

Tesco said its own costs are climbing, consumers are being hit by rising prices and it will invest in prices to remain competitive amid rocketing food ...

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In the last 12 months the Tesco share price has stood out as meeting the challenges facing the wider sector, as the UK economy faces the biggest cost of ...

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination. The supermarket is also undergoing a three-year cost-saving programme, as it looks to cut £1bn by repurposing space in store, closing its Jack’s brand, and improving its procurement processes. In Q3, Tesco was able to grow group sales by 2.4% on a like-for-like basis, compared to a year ago. Tesco has pledged to continue its Aldi price match scheme and extend it to 650 lines, along with various Clubcard promotions. This shouldn’t come across as too surprising when you consider today’s CPI number showed that inflation surged in March to 7%, and we haven’t even taken into consideration the various price and tax rises that are expected to hit consumers' wallets in April.

In the last 12 months the Tesco share price has stood out as meeting the challenges facing the wider sector as the UK economy faces the biggest cost of ...

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination. The supermarket is also undergoing a three-year cost-saving programme, as it looks to cut £1bn by repurposing space in store, closing its Jack’s brand, and improving its procurement processes. In Q3, Tesco was able to grow group sales by 2.4% on a like-for-like basis, compared to a year ago. Tesco has pledged to continue its Aldi price match scheme and extend it to 650 lines, along with various Clubcard promotions. This shouldn’t come across as too surprising when you consider today’s CPI number showed that inflation surged in March to 7%, and we haven’t even taken into consideration the various price and tax rises that are expected to hit consumers' wallets in April.