Investors hail Tesco in spite of gloomy results
Investors have welcomed Tesco’s results as a sign the supermarket giant is “back on track”, even though it reported a 28% profit drop and a pension deficit two times higher than the previous year.
Investors have welcomed Tesco’s results as a sign the supermarket giant is “back on track”, even though it reported a 28% profit drop and a pension deficit two times higher than the previous year.
Tesco incurred the wrath of the FCA over an accounting mishap in 2014 on Wednesday and faced opposition from majority shareholders, Schroders and Artisan Partners, over its proposed takeover of Booker.
Presenting the proposed merger of food retailer Tesco and wholesaler Booker, Tesco CEO, David Lewis said the combined group would “delight” customers.
Although Thursday’s influx of trading updates highlighted positive growth for retailers like Marks & Spencer and Tesco, problems in the sector persist, according to Brewin Dolphin equity analyst Nicla di Palma.
Unilever shares slid this morning as it announced third quarter results and news of a fall-out with one of its biggest customers spread.
The market was enticed by Tesco’s recovery story Wednesday morning, leading to a 10.6% jump in the supermarket’s share price to 208.7p.
Evidence of its sustained sales momentum, propelled Tesco’s share price upward by nearly 2.2% to 170p during Thursday morning trading.
Tesco saw its shares slide over 5% despite reporting a return to profitability after a troubled period.
Tesco has become the latest major UK supermarket to see a notable share price rise triggered by a strong set of numbers.
Too hot or too cold, UK retailers’ reasons for poor performance is becoming ever more like goldilocks’ adventures with porridge. So how many more excuses can investors weather?
Multi-faceted companies are the best way for investors in UK consumer spending to negotiate the backdrop of falling goods prices, according to Smith & Williamson’s Tineke Frikkee.
The ability to generate strong cash flows are not a sufficient reason to buy a company, says Simon Brazier, co-head of the Investec quality team.