One of the world’s largest retailers. I have a holding in my income portfolio (epic code: TSCO)
Tesco released their first quarter IMS yesterday and there is not much more to be said in addition to what already has been commented on in the press. Trading continues to be poor and there are questions over whether Philip Clarke is the right Chief Executive at this time for Tesco.
I continue to hold the shares (despite it being the worse performer in my portfolio) for the 5% yield and the belief that Clarke with his substantial retail knowledge is probably the best person to lead the company back to growth, but he needs to prove that he can act faster than he did over their US Fresh & Easy chain.
The first quarter showed UK like-for-like sales including VAT (exc. petrol) down by -3.7%. International sales increased by 0.5% at constant exchange rates, although with a significant currency impact sales declined by -8.0% at actual rates. Group sales declined by -0.9% (at constant rates, exc. petrol).
Continuing to be patient for now.
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