J Sainsbury (SBRY) Q1 2026 TU earnings summary

Executive summary

• Achieved highest market share since 2016, with strong Q1 trading momentum and all brands contributing to growth and market share gains.

• Value for Money customer satisfaction scores reached record highs, supported by expanded Aldi Price Match and Nectar Prices.

• Taste the Difference sales rose 18% in the quarter, with fresh food up 20% and over 450 new products launched.

• Convenience and Groceries Online sales both grew 6% year-over-year, with improved customer satisfaction and increased order size.

• Argos and Tu Clothing delivered strong growth, with Argos up 4.4% and Tu Clothing up 8% year-over-year.

Financial highlights

• Total retail sales (excluding fuel) increased 4.9% year-over-year in Q1 2025/26; grocery sales grew 5.0%, and Argos sales increased 4.4%.

• Like-for-like sales (excluding fuel) were up 4.7% year-over-year.

• Taste the Difference and premium own label delivered double-digit sales growth and market share gains.

• Fuel sales grew 2.4% year-over-year; total retail sales including fuel up 2.4%.

• Q1 2025/26 total retail sales (excluding fuel) reached £8,922 million.

Outlook and guidance

• Retail underlying operating profit guidance maintained at around £1 billion, with free cash flow over £500 million for 2025/26.

• Profit delivery expected to be weighted more towards the second half of the year.

• £1 billion in cost savings targeted by March 2027, with ongoing investment in customer proposition and technology.

• Well positioned for a strong summer, with continued focus on price competitiveness and quality.

• Market remains highly competitive and promotional, with continued focus on maintaining value leadership.