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Sainsbury’s sales rose 5.1% at Christmas, but shares fell 6% amid profit concerns and speculation over selling Argos.
Sainsbury’s reported a 5.1% rise in festive grocery sales, driven by strong demand for its premium Taste the Difference brand, marking its sixth consecutive Christmas with market share gains.
However, Argos sales fell 2.2% and non-food and clothing sales declined 1%, due to weak consumer spending on higher-ticket items and intense competition from discounters and online retailers.
Overall like-for-like sales excluding fuel rose 3.4% over 16 weeks, a slowdown from the prior quarter, but the company maintained its full-year profit guidance above £1 billion and upgraded its free cash flow outlook.
CEO Simon Roberts cited ongoing cost-of-living pressures and inflation easing as key factors, while shares dropped 6% amid market disappointment and renewed speculation over a potential Argos sale, which the company declined to confirm.
Las ventas de Sainsbury aumentaron un 5,1% en Navidad, pero las acciones cayeron un 6% en medio de preocupaciones sobre las ganancias y la especulación sobre la venta de Argos.