Supermarket retailer Sainsbury topped forecasts today with its seventh consecutive quarter of same-store sales growth as customers snapped up more expensive healthy and fresh foods.
Sainsbury, Britain's third-largest supermarket retailer, posted a 6.6 per cent rise in second-quarter like-for-like sales excluding fuel. Total sales for the period rose 7.6 per cent including petrol and 8.0 per cent excluding fuel.
The company said its recovery remained on track, although the third quarter, when it faces tough comparables, would remain "highly competitive".
"We have continued our good sales performance during the second quarter of the year and have benefited from spells of good weather and the focus this places on fresh and healthy food," chief executive Justin King said in a statement.
Sainsbury shares were down 0.8 per cent at 387.8 pence by 8:30 a.m., underperforming a 0.4 per cent fall in the DJ Stoxx index of European retail companies. The shares have risen nearly 10 per cent in the past month and some analysts had forecast profit-taking.
A survey of 10 analysts by Reuters had forecast on average second-quarter like-for-like sales excluding fuel rising 6.1 percent on total sales of 8.2 per cent. Forecasts for same-store sales excluding petrol ranged from 5.5 per cent to 6.5 per cent.