1028 GMT - J Sainsbury is expected to report robust growth in 1Q again given positive recent sector data and despite the slow start of the warmer season, HSBC analysts say in a note. The British grocer's market share for the first quarter rose 20 basis points and sales increased by 6% on year, according to the latest Kantar report, they say. However, the slow start of the spring and summer period is expected to translate to a mid-single-digit percentage decline in sales for its Argos brand, a low single-digit drop for general merchandise and flat sales for the clothing business. Looking ahead, the group's medium-term ambitions should be substantially underpinned by its GBP1 billion cost-savings program, the analysts say. HSBC lifts the target price to 325 pence from 310 pence. Shares are up 0.8%. (michael.susin@wsj.com)
(END) Dow Jones Newswires
June 19, 2024 06:28 ET (10:28 GMT)
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