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Highlights

  • TSCO reported growth of 28.0% YoY in UK market share, marking 24 consecutive four-week periods of gains.
  • The company recorded Q1 food sales growth, with UK online sales up 11.5% YoY and ROI online sales up 19.8% YoY.
  • TSCO reaffirmed FY25 - 26 guidance for operating profit between GBP 2.7 billion and GBP 3.0 billion and continued its GBP 1.45 billion share buyback programme.

Tesco plc (LSE:TSCO) reported a rise in group sales across all regions for the first quarter of its 2025- 26 financial year, supported by continued momentum in its UK market share, food range expansion, and digital channel growth. The company maintained its full-year guidance and confirmed ongoing progress on its GBP 1.45 billion share buyback programme.

Chief Executive Ken Murphy stated that the retailer had recorded like-for-like sales growth across all business segments, citing customer satisfaction improvements and extended product offerings as contributing factors. He noted that Tesco’s value proposition and increased availability had supported market share gains in the UK, alongside investments in own-brand innovation.

In its core UK market, Tesco reported a YoY market share gain of 44 basis points, reaching 28.0%. This represents 24 consecutive four-week reporting periods of share growth. Brand perception improved by 65 basis points, driven by pricing strategies such as the Aldi Price Match covering over 600 items, Low Everyday Prices on approximately 1,000 items, and Clubcard Prices on around 9,000 lines weekly.

UK food sales rose 5.9% YoY, with growth particularly evident in the fresh food category. Non-food sales, excluding toys, were up 6.2% YoY, supported by demand in home and clothing categories, partly attributed to seasonal weather and new product ranges. Over 350 new own-label items were introduced, including additions to Tesco’s Finest range and barbecue offerings. Tesco’s wines received 40 awards at the International Wine Competition.

Online sales in the UK grew by 11.5% YoY, with market share up 163 basis points. The recent launch of the F&F clothing range online supplier was cited as a contributor to increased customer engagement. Tesco was also ranked first in the Advantage survey for the tenth consecutive year.

Tesco’s Republic of Ireland business posted food sales growth of 5.8% YoY, with market share up 22 basis points to 23.3% YoY. This marked the 40th consecutive four-week period of share gains in the region. Online sales in Ireland increased 19.8% YoY, supported by last year’s introduction of same-day delivery and Click & Collect services. Tesco noted volume growth across fresh food and highlighted multiple awards for Irish food ranges.

In its wholesale division, Booker experienced 2.0% like-for-like sales growth, with core catering sales up 7.3% YoY and core retail up 5.4% YoY. These gains offset the ongoing decline in tobacco sales and performance at Best Food Logistics.

Central Europe saw like-for-like growth in all markets, with food sales increasing by 4.4% YoY and fresh food up by 7.3% YoY. Sales were particularly driven by produce, dairy, and bakery. The company implemented targeted pricing adjustments in response to regulatory changes in Hungary, where a margin cap was introduced on selected food items.

Tesco reiterated its previously issued guidance for FY25-26, with an expected adjusted operating profit of between GBP 2.7 billion and GBP 3.0 billion, compared to GBP 3.128 billion in FY24-25. Free cash flow is forecast to remain within the medium-term range of GBP 1.4 billion to GBP 1.8 billion.

Since launching its GBP 1.45 billion share buyback programme on 10 April 2025, Tesco has repurchased GBP 448 million worth of ordinary shares through to 11 June 2025. The remaining amount is expected to be completed by April 2026.

Tesco shares were trading 0.78 % higher at GBX 388.30 as of 12 June 2025.