Tesco prepares for online F&F online as annual sales grow
Tesco Credits: Tesco, Facebook Supermarket giant Tesco has revealed that it plans to carry out an online launch of its clothing brand F&F in the coming year. The news comes as the retailer posted its preliminary results for the fiscal year 24/25, during which time it welcomed a growth in group sales. For the period, overall sales, excluding fuel and VAT, rose to 63.63 million pounds, up 3.5 percent at actual rates and 4 percent at constant rates. Group adjusted profit also increased at actual rates by 10.6 percent, amounting to 3.13 million pounds over the period, with retail contributing 2.97 million pounds, at an increase of 7.7 percent on the year prior. Revenue rose at a 2.5 percent rate, coming to 69.9 million pounds. However, operating profit dropped by 3.9 percent to 2.71 million pounds, while profit before tax also took a 3.2 percent, amounting to 2.22 million pounds. Profit for the year after tax increased 36.7 percent to 1.63 million pounds. Outlook to provide flexibility as market competitiveness heats up Tesco said its various investments in the last four years have helped it to strengthen its competitive position and its financial and trading momentum, with it delivering “well against the multi-year performance framework we set out in 2021”. However, noting that there had been a “further increase in the competitive intensity of the UK market”, the company is looking into opportunities to protect its current positioning. Its guidance for the FY25/26, therefore, “gives us flexibility and firepower to be able to respond to current market conditions”. Group adjusted profit for the period is anticipated to be between 2.7 to 3.0 billion pounds, with a free cash flow within the medium-term guidance range of 1.4 to 1.8 billion pounds. In the report, chief executive, Ken Murphy, said the company was “making significant progress on our long-term growth opportunities, further enhancing our digital capabilities with increased personalisation, further improvements to our online experience and an expanded retail media offering”. He added: “Building on our strong financial performance, robust balance sheet and positive momentum, we are setting ourselves up for the year ahead with the flexibility to continue to win in a highly competitive market. Despite inflationary headwinds, we are committed to ensuring customers get the best possible value by shopping at Tesco, and see further opportunities to strengthen our competitiveness.”
Supermarket giant Tesco has revealed that it plans to carry out an online launch of its clothing brand F&F in the coming year. The news comes as the retailer posted its preliminary results for the fiscal year 24/25, during which time it welcomed a growth in group sales.
For the period, overall sales, excluding fuel and VAT, rose to 63.63 million pounds, up 3.5 percent at actual rates and 4 percent at constant rates. Group adjusted profit also increased at actual rates by 10.6 percent, amounting to 3.13 million pounds over the period, with retail contributing 2.97 million pounds, at an increase of 7.7 percent on the year prior.
Revenue rose at a 2.5 percent rate, coming to 69.9 million pounds. However, operating profit dropped by 3.9 percent to 2.71 million pounds, while profit before tax also took a 3.2 percent, amounting to 2.22 million pounds. Profit for the year after tax increased 36.7 percent to 1.63 million pounds.
Outlook to provide flexibility as market competitiveness heats up
Tesco said its various investments in the last four years have helped it to strengthen its competitive position and its financial and trading momentum, with it delivering “well against the multi-year performance framework we set out in 2021”. However, noting that there had been a “further increase in the competitive intensity of the UK market”, the company is looking into opportunities to protect its current positioning.
Its guidance for the FY25/26, therefore, “gives us flexibility and firepower to be able to respond to current market conditions”. Group adjusted profit for the period is anticipated to be between 2.7 to 3.0 billion pounds, with a free cash flow within the medium-term guidance range of 1.4 to 1.8 billion pounds.
In the report, chief executive, Ken Murphy, said the company was “making significant progress on our long-term growth opportunities, further enhancing our digital capabilities with increased personalisation, further improvements to our online experience and an expanded retail media offering”.
He added: “Building on our strong financial performance, robust balance sheet and positive momentum, we are setting ourselves up for the year ahead with the flexibility to continue to win in a highly competitive market. Despite inflationary headwinds, we are committed to ensuring customers get the best possible value by shopping at Tesco, and see further opportunities to strengthen our competitiveness.”
