DAVE MCCARTHY INVESTEC
Another disappointing statement with like-for-likes down in all regions. Management put on a brave face, but we doubt if the turnaround plan encompassed more sales losses as it entered its second year. A reason for the disappointment is industry dynamics which are eroding the sales and profits of large stores.
CLIVE BLACK SHORE CAPITAL
Following this update we are not changing our full-year estimates for Tesco... In stating this we harbour some growing concerns about the robustness of our UK forecasts given the weaker than anticipated trading momentum, implying the need for stronger rest of year trading and/or firmer margins.
JAMES GRZINIC JEFFERIES
Tesco’s first quarter was slightly weaker than feared, particularly internationally. However, we expect estimates to hold and see scope for momentum to improve from here (particularly in Asia)... International performance was in line with budgets and expected to improve in coming quarters.