Analyst Views: Did outgoing chief Justin King’s last set of results at Sainsbury’s deliver?

 
Kasmira Jefford
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KEITH BOWMAN | HARGREAVES LANSDOWN

In all, the departing chief executive is again defying the doubters. The retailer has made clear progress under his leadership, with an ongoing strategy being left for the company to pursue. Nonetheless, with the sector remaining highly competitive... analyst opinion continues to point to a “hold”.

JAMES GRZINIC | JEFFERIES

Understandably enough these finals focused on a well-earned celebratory exit for King, rather than the incremental challenges thrown at the business by changing industry dynamics. Ultimately, as discounters’ openings focus further south, and peers reinvest into headline pricing the earnings risks remains one-sided.

DARREN SHIRLEY | SHORE CAPITAL

Sainsbury’s has reported preliminary results ahead of our and market expectations. This is against a backdrop of flat to declining market volumes and declining profits in the other quoted big four grocers. Therefore, we believe Sainsbury’s management team deserve considerable credit.

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