Tesco profits soar despite fall in clothing sales
UK retail giant Tesco has posted annual underlying profit of GBP3.23bn (US$4.7bn), up 10% for the 53 weeks ended 28 February 2009, but saw clothing sales fall 2% in the same period. Tesco maintained that its clothing category had outperformed the market, with good growth in men's wear and an "improving trend" in…
Egytex News Desk
Source: Just-Style
Its group non-food sales rose 6% to GBP12.5bn, including GBP3.8bn in International.
Meanwhile, the company reported a 15.1% increase in overall group sales to GBP59.4bn. Sales grew significantly more rapidly in Asia than in Europe, helped by the early success of its Homever store acquisitions in Korea.
Total international sales grew by 30.6% at actual exchange rates to GBP17.9bn and by 13.6% at constant exchange rates, Tesco said. UK sales increased by 9.5% to GBP41.5bn, including like-for-like growth of 4.3%.
Tesco plans to create 26,000 new jobs this year, with 8m square feet of new space to be opened this year - including 75% outside the UK.
The company said it has made a good start to the new financial year with total sales up by 9.2% in the first six weeks.
Tesco chief executive Terry Leahy said: "At a time when customers everywhere are feeling the economic strain, we are responding to their changing needs in all our markets by lowering prices, introducing more affordable products and offering even sharper promotions.
"We have made a good start to the new financial year and I am confident Tesco will continue to make good progress even in the current global economic environment."
Source: Just-Style
From the Egytex news archive, first published on 23 April 2009. Figures and names are as reported at the time.
