F&F clothing sales exceed 1.2 billion pounds as Tesco evolves strategic ambitions

UK-based supermarket giant Tesco has reported a robust performance for its fashion division, F&F, for the 53 weeks ended February 28, 2026.

According to the group's preliminary results, F&F clothing sales increased by 5.1 percent to over 1.2 billion pounds (1.63 billion dollars). This growth was supported by a strong performance in womenswear, particularly within activewear and the curated ‘F&F Edit’ ranges.

The retailer attributed the division's success to its like-for-like (LFL) sales growth of 5.1 percent. A significant driver during the period was the launch of F&F Online, which provided customers with access to a more comprehensive range of apparel. This digital expansion aligns with the group's broader goal to meet more everyday customer needs through its existing retail ecosystem.

Strategic focus on digital and value

Tesco chief executive officer Ken Murphy noted that the company remains committed to managing costs for consumers amidst global economic uncertainty. The group has evolved its strategic ambitions into five reinforcing goals, including a focus on being ‘connected, personalised and loved by customers’. This includes leveraging artificial intelligence (AI) to enhance the shopping experience.

The retailer is currently trialling a large-scale AI assistant with approximately 280,000 colleagues, with plans to roll the technology out to customers later this year. For the fashion segment, the integration of F&F into the group's digital platforms, including the Tesco Marketplace which offers over 450,000 stock keeping units (SKUs), remains a priority for generating capital-light revenue.

Financial overview and outlook

On a group level, Tesco reported sales of 66.59 billion pounds, representing a 4.3 percent increase at constant exchange rates. Adjusted operating profit rose by 0.6 percent to 3.15 billion pounds. The company’s ‘Save to Invest’ programme has now delivered over 2.2 billion pounds in savings over the last four years, which continues to fund price investments and colleague pay increases.

Looking ahead to the 2026/27 financial year, the group expects to deliver an adjusted operating profit of between 3 billion pounds and 3.3 billion pounds. Capital expenditure is anticipated to rise to approximately 1.6 billion pounds as the group continues to invest in technology, digital capabilities, and the optimization of its distribution network.