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flag Sainsbury’s raises profit forecast above £1 billion, driven by strong sales and cost cuts, despite Argos sale talks failing.

flag Sainsbury’s has raised its annual earnings forecast, now expecting retail underlying operating profit to exceed £1 billion, citing stronger-than-expected first-half performance. flag The UK’s second-largest supermarket reported a £504 million operating profit for the 28 weeks ending September 13, slightly up from last year and above its prior forecast. flag Like-for-like sales, excluding fuel, rose 4.5% over the period, with food sales growing 5.7% in the second quarter. flag Argos sales growth slowed to 0.1% in the quarter, down from 4% in the first, amid market competition and deflation. flag Talks to sell Argos to JD.com collapsed due to disagreements over terms. flag The company also cut costs by closing in-store cafes and removing hot food and bakery counters, leading to over 3,000 job losses. flag CEO Simon Roberts cited disciplined pricing and sustained grocery volume growth as key factors behind the improved outlook, expressing confidence ahead of the Christmas trading period despite ongoing cost pressures.

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