Tesco's F&F clothing brand launches online after strong Q1

Tesco announced strong performance across its operations for the first quarter of fiscal 2025, with notable growth in its non-food and clothing segments. Total sales for the quarter of 16.4 billion pounds, increased by 5.5 percent.

In the UK, Tesco experienced significant momentum in non-food categories. Non-food sales, excluding toys, increased by 6.2 percent, driven by strong growth in both home goods and clothing. This uplift was attributed to the introduction of new and extended ranges, alongside favourable warmer weather. A key development in enhancing its apparel offering was the successful online launch of its F&F clothing brand in May. This strategic move aims to make its stylish and affordable ranges more accessible to a wider customer base.

Chief Executive Ken Murphy highlighted the company's commitment to customers, stating, “We are pleased with our performance across the first quarter. Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the Group.”

Murphy noted the overall strength in the UK, observing, "In the UK we have continued to see market share gains and increased customer satisfaction across a wide range of measures, a reflection of our powerful value proposition, strong availability and focus on product quality and innovation."

Across all channels, online sales led the growth with an 11.5 percent increase, supported by increased capacity and improved customer satisfaction. Beyond its core retail operations, Tesco's Booker segment also reported core retail growth of 5.4 percent, propelled by the strong performance of its symbol brands.

Addressing the competitive landscape, Murphy said: “The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco.”

The company continues to maintain its guidance for group adjusted operating profit for fiscal year 25/26 of between 2.7 billion pounds and 3 billion pounds and free cash flow within our medium-term guidance range of 1.4 billion pounds to 1.8 billion pounds.