10 January 2025
If you are covering Sainsbury’s latest results, please see the following comment from Lucy Rumbold, equity research analyst at Quilter Cheviot:
"Sainsbury's has reported a modest 2.8% increase in like-for-like sales for Q3, driven primarily by strong grocery performance. Food sales rose by an impressive 4.1% like-for-like, showcasing resilience in the face of challenging economic conditions. However, the group struggled in General Merchandise, with marginally negative like-for-like sales, and Argos also faced headwinds, posting negative like-for-like sales overall, despite a seasonal boost during the Christmas trading period.
"These results reflect a familiar pattern seen across the sector, with premium ranges such as Sainsbury's 'Taste the Difference' delivering notable growth—up 16%—as trends are showing consumers are continuing to trade upwards.
"The group remains confident in its ability to meet profit guidance, with expectations centred around the midpoint of forecasts, aligning with market consensus. While slightly below expectations, Sainsbury's performance highlights the ongoing challenges within non-food categories, but its strength in groceries positions it well to navigate the current economic climate."
