Sainsbury's backs profit guidance after solid Q1 sales, shares react on London trade

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-30, 13:54.

Sainsbury's (GB00B019KW72) reported a 2.7% increase in total retail sales excluding fuel for its first quarter, while reiterating full-year profit and cash flow guidance, according to Tuesday's update in London where the shares trade on the LSE. The FTSE 100 grocer said trading remained broadly consistent with expectations despite mixed category trends.

What the Q1 numbers show

For the 16 weeks to June 20, 2026, Sainsbury's total retail sales excluding fuel rose to £9.153 billion from £8.92 billion a year earlier, beating company-compiled consensus of 2.4% growth. Like-for-like sales excluding fuel increased 2.1%, ahead of the 1.9% growth expected by analysts, supported by food volumes.

Grocery sales advanced 3.6% year-on-year to £7.603 billion, slightly above the roughly 3.5% growth UBS had flagged in a preview as being in line with broader industry data. General Merchandise and Clothing revenue declined 3.7% to £438 million, weaker than the 1% drop embedded in consensus, highlighting continued pressure in discretionary categories.

Guidance and analyst expectations

Sainsbury's maintained its full-year guidance for total underlying operating profit between £975 million and £1.075 billion, broadly unchanged from the £1.03 billion delivered in the year to February 28, 2026. The company also continues to target retail free cash flow of more than £500 million, compared with £574 million achieved last year, emphasizing ongoing balance sheet discipline.

Analysts at UBS expect Sainsbury's grocery business to keep growing modestly ahead of the UK food market as the chain leans on value-led propositions and loyalty schemes to defend share against discounters. Commentary from Bloomberg points to management's focus on price investment and promotions to offset consumer caution related to geopolitical and energy cost uncertainty.

The product behind the stock

Sainsbury's generates most of its revenue from its core supermarket chain, offering branded and own-label groceries across stores and online. The group also operates Argos for general merchandise and electricals, plus clothing ranges such as Tu, giving it multi-category exposure to UK consumer spending.

Where the stock trades today

The Sainsbury's shares (GB00B019KW72) trade on the London Stock Exchange under the ticker SBRY at around 324.00 pence as of 2026-06-30, 11:30 London time, following a roughly 2.6% move higher reported in Tuesday's session.

This article provides factual information on the Sainsbury's shares and does not contain investment advice or personal recommendations. All data and assessments are based on sources cited and may change over time. Investors should conduct their own research or consult a qualified advisor before making investment decisions.