Tesco is one of the worlds leading international retailers. Since the company first the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors. The UKs leading retailer Tesco was floated on the stock exchange in 1947 and in 1995 took over rival Sainsburys position as the UK number one. The principal activity of the group is food retailing, with over 2,000 stores worldwide. Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, to expand by growing internationally, to be as strong in non-food as in food and to follow customers into new retailing services. The company launched a home shopping service in 2000, allowing customers to order their shopping online. Tesco is now expanding its convenience stores and overseas into areas such as Taiwan, Malaysia, Poland, the US and Ireland.

Upper graph = 12 month share price with 6 month moving average
Lower graph = 12 month volume (red line = volume average).

Half Yearly Report

Financial headlines:

· Group sales up 1.4% to £36.0bn* (up 3.2% at constant rates); Group sales exc. petrol up 1.6% (up 3.7% at constant rates)

· Statutory profit before tax down (11.6)% to £1.7bn; Underlying profit before tax down (8.5)% to £1.8bn

· Group trading profit of £1.6bn, down (10.5)% - UK down (12.4)% to £1.1bn; International down (17.1)% to £0.4bn; Tesco Bank up 114% to £94m

· Underlying diluted EPS reduction of (7.9)%**

· Interim dividend per share maintained at 4.63p

· Group capital expenditure brought down from £2.1bn to £1.6bn; on track for a full year reduction to c.£3.2bn

Business update:

· UK plan implementation underway, with improvements in UK sales performance, including like-for-like sales growth in second quarter

· Reduced new UK space programme on track; greater focus on Express, with 60 new stores in H1

· Grocery online business continues to outperform, growing by 11% in the UK; dotcom now launched in Poland and Slovakia, with Thailand and Malaysia launching soon

· Tesco Bank migration successfully completed onto new, modern platforms; mortgages launched

· Majority of businesses in Asia and Europe gained or held share, in tough external environment

· United States losses reduced slightly to £(72)m at constant rates; actions taken to reduce losses further in the second half

· Successful property transactions completed in Thailand and Korea, raising c.£700m proceeds

· Japanese market exit deal agreed with Aeon

Share holders will now press to ditch USA operations

tquite a steady day today considering - but results were expected

hasn't dipped as i expected but stayed very steady at 331p.,.

nice profit on our short as predicted.

Tesco: analysts comment
Wed 03 Oct 2012

TSCO - Tesco

Latest Prices
Name Price %
Tesco 328.60p -2.41%

FTSE 100 5,820 +0.18%
FTSE 350 3,104 +0.13%
FTSE All-Share 3,038 +0.13%
FTSEurofirst 300 1,100 -0.13%
Food & Drug Retailers 4,125 -1.56%

LONDON (SHARECAST) - We’ve assembled the views of some leading analysts on the prospects for Tesco, along with their price targets.


Philip Dorgan at Panmure Gordon

“We are buyers of Tesco, with a target price of 440p, because we believe that its UK business is fixable and because we believe that management buys into the need for strategic change that will help to make the sector investable again.”


Nick Coulter at Nomura

“Tesco UK posted its first (incrementally) positive like-for-like for six quarters. Moreover, Tesco met its guidance for a circa 5.2% margin, and reaffirmed its target for a similar H2 margin. With inflation moderating, we view the data point as further evidence that Tesco’s volume-led recovery is underway.”
Hence his ‘Buy’ recommendation with a price target of 430p.


Kate Calvert at Seymour Pierce

“…given potential longer term growth, there is no visibility on where UK profitability will bottom and whether management actions will work in the medium term. In addition, too many of its overseas businesses face trading issues short term. We reiterate our reduce recommendation as we expect inflation to return which has proved not to be positive for volumes or margin given the maturity of the UK market.” She has a ‘Reduce’ recommendation with a price target of 310p.


Andrew Kasoulis at Credit Suisse

“With consensus already drifting lower ahead of today, further downgrades should not be a surprise. But the scale of the slowdown in Europe and Korea is disappointing. Also, although Tesco has not formally revised its ROCE target (14.6% for 2014/15E), we think most analysts and investors will now consider it unachievable. On the plus side, improvement in the UK and more capital discipline are likely to be considered positive.” He has a ‘Neutral’ rating with a price target of 370p.

TSCO is being attacked from above (Sainsbury and Waitrose) and below (Aldi and Liddle), nowhere for them to go.

dont forget morrisons :-0

Tesco still has one bomb, a HUGE price war. HUGE being the word. No supermarket would want this. This has been talked about in the past, may be used if the turn around fails.

Where's the bottom---315----310----300p

bb with little or no growth prospects TSCO must be headed sub 300p.

they're certainly under a lot of pressure and competion.,.

Put your money in sains Bb. lol

LONDON (ShareCast) - Tesco (LSE: TSCO.L - news) shares continued to fall on Thursday, following a disappointing set of second quarter results from the supermarket giant the previous day. Knocking investor sentiment further was broker Exane BNP Paribas, which cut its targe on the stock from 325p to 300p, and maintained its underperform rating.

you may well be right DC. still wish i was in your wandisco.,.

Dont you go near them. :-))

Mr Leahy has left Tesco in a mess.

more south

Retail sales rise as chilly weather boosts clothing demand - BRC

LONDON | Tue Oct 9, 2012 2:57am BST

(Reuters) - British retail sales posted a solid rise last month as Britons splashed out on sturdy shoes and warm clothes, the British Retail Consortium said on Tuesday, raising the chances of a more lasting economic recovery.

Internet sales also showed some signs of a rebound after Britons watched the London Olympics and the Paralympics in August and early September rather than shopping online.

Like-for-like retail sales -- or sales at stores open for at least a year -- rose by 1.5 percent in value terms compared with September 2011, following a 0.4 percent dip in August, the BRC said.

UBS Upgrades to Buy TP 370p