Sainsbury's profits rise, posts marginal drop in clothing sales

J Sainsbury Plc has reported underlying profit growth of 51 million pounds driven by Argos synergies, for the 28 weeks to September 22, 2018. The company said, while Group sales at 16,884 million pounds (22,156 million dollars) increased by 3.5 percent, clothing sales declined 1 per cent due to changes in promotional phasing.

Commenting on the interim results, Mike Coupe, Sainsbury’s Group Chief Executive, said in a statement: “The market remains very competitive and we are transforming our business to meet rapidly changing customer needs. We have delivered a solid first half performance and profit has increased because we have delivered significant Argos synergies ahead of schedule.”

The company added that the consumer outlook is uncertain as it heads into the key trading period. Though the grocery, general merchandise and clothing markets continue to be highly competitive and very promotional, Sainsbury’s said, the company remains on track to deliver current market consensus for 2018/19 UPBT of 634 million pounds (832 million dollars).

Sainsbury’s has announced an interim dividend of 3.1 pence per share, in line with its policy of paying 30 percent of prior full year dividend.

Picture:Facebook/Tu Clothing