Tesco shares steady as supermarket giant upgrades guidance

Shares in Tesco (LSE: TSCO) were broadly unchanged Thursday after the UK’s largest supermarket by market share upgraded its profit guidance on the back of better-than-expected Christmas trading.

Tesco reported a 7.3% rise in like-for-like sales, excluding VAT and fuel, in its fiscal third quarter to November 25. Growth slowed slightly over the six-week festive season but remained robust at 6.4%. The company cited market share gains for 10 consecutive 12-week periods.

Buoyed by the stronger-than-anticipated sales, Tesco raised its outlook for the full-year retail adjusted operating profit to around £2.75 billion from its previous £2.6-£2.7 billion guidance range.

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The upgraded forecast comes despite continued uncertainty around the economic outlook and pressure on household budgets.

Tesco shares have climbed 21% over the past year but were broadly flat Thursday morning at 296.20p.