Morrisons sees LFL sales slip in first quarter
Supermarket group Morrisons has said that its financial outlook for the year ending January 2013 remains unchanged despite like-for-like (LFL) sales falling in the first quarter.
Supermarket group Morrisons has said that its financial outlook for the year ending January 2013 remains unchanged despite like-for-like (LFL) sales falling in the first quarter.
In the 13 weeks to April 29th, the retailer said total sales (excluding VAT and fuel) rose by 1.5%. When including fuel, sales were 3.1% higher. However, LFL sales (excluding VAT and fuel) fell by 1.0%, but rose 0.9% including fuel.
Nevertheless, Morrisons still said that its performance was broadly in line with its expectations.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"As expected, the economic environment for the consumer has remained challenging, with the high price of oil and other commodity prices putting pressure on disposable incomes," the statement said.
"Against this backdrop we have continued to keep prices low for our customers without compromising on Morrisons quality."
However, the group said that the board "remains cautious" due to the uncertain economic background which is expected to remain challenging for the consumer.
The firm is around half-way through its programme to retire £1bn of equity over the two years to March 2013. To date, it has acquired and cancelled 168m shares at a total investment of £491m.
BC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published