Executive Summary

• UK grocery retailer Morrisons reported comparable sales growth (excluding fuel) of 3.6% in the nine weeks ended January 6, below the consensus estimate and slowing sequentially.
• Management pointed to consumer uncertainty as a factor inhibiting growth in the period.
• Wholesale revenues drove growth, contributing 3.0% to total comps, while retail comps, excluding fuel, contributed just 0.6%.
• The company maintained the guidance given in its first-half results.