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TESCO Results (LSE: TSCO) UK Comp Growth Levelling Off, Though Company Remains “On Course” to Hit Margin Target

Executive Summary

  • Tesco reported UK comparable sales growth of 2.3% in 1H19, level with that seen in 2H18. 2Q19 UK comps came in ahead of expectations.
  • The company reported an adjusted operating margin of 2.9% versus 2.6% in the year-ago period and stated that it was “on track” to achieve its ambition of a 3.5%–4.0% operating margin by FY20.
  • Further adjusted to exclude the now-discontinued Tesco Direct general-merchandise operation, the company said its 1H19 operation margin came in at 3.0%.

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