Wm Morrison Supermarkets (WMS) Q1 2026 earnings summary

Executive summary

• Achieved Q1 targets with like-for-like sales up 2.8% year-over-year, marking the 13th consecutive quarter of growth.

• Total sales rose 2.6% to GBP 4.1 billion, with strong supermarket and seasonal event performance, especially at Christmas.

• Continued investment in price, promotions, and loyalty, with significant price reductions on over 2,500 items and record redemption rates for loyalty offers.

• Expanded convenience footprint with 22 new franchise stores in Q1 and plans for further growth.

• Maintained focus on cost savings and working capital improvements, offsetting significant external cost headwinds.

Financial highlights

• Q1 sales reached GBP 4.1 billion, with group like-for-like sales up 2.8% year-over-year.

• Underlying EBITDA was GBP 151 million, up GBP 10 million or 7% year-over-year.

• Operating cash inflow of GBP 22 million, up GBP 12 million year-over-year.

• Free cash outflow of GBP 80 million, a GBP 64 million improvement year-over-year.

• GBP 49 million in cost savings delivered in Q1, totaling GBP 894 million since program inception.

Outlook and guidance

• Trading conditions remain highly competitive with continued market softness and negative volumes.

• Cost headwinds for FY 2026 expected to be around GBP 70 million, mainly from wage, business rates, and energy costs.

• Cost savings and working capital programs are on track to exceed targets, with further updates expected in Q2.

• CapEx guidance for FY 2026 remains at GBP 330 million.

• Focus remains on value, price investment, and loyalty to maintain momentum into upcoming seasonal events.