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
"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.
IHT receipts approach record year – will the tax be reformed?
News The Treasury is set to take £7.6 billion from inheritance tax payments this financial year amid rumours of reform in the Spring Budget
By Marc Shoffman Published
Stocks and shares ISAs beat cash ISAs despite rising interest rates
Exclusive analysis for MoneyWeek shows that the stock market beat cash ISAs last year - and when inflation is factored in, cash savers actually made a loss. We run through the figures.
By Ruth Emery Published