Tesco Q1 figures likely to leave a sour taste for investors

Helal Miah, investment research analyst at The Share Centre, authors of the Profit Watch UK report, comments on Q1 results from Tesco:

“Tesco is suffering at the expense of high end retailers and discounters, and today’s figures are likely to leave a sour taste in the mouth of its investors. But Tesco is not on its own.  Morrisons too has seen its profit margins under pressure, with the two dragging down the performance of the UK listed firms in the sector.  In 2013, Food and Drug retailers in the FTSE 350 saw their net profits plunge by 37% to their lowest level since 2007, in spite of revenues rising 1.2 % to £113bn.
 
“It’s clear that Tesco’s turnaround has some distance to go yet, and investors will be watching carefully for the impact of its price-slashing policy and store-revamps on its bottom line for the remainder of the year.”