Sainsbury’s raises the floor of its profit outlook after stronger first-half trading

Sainsbury’s ($SBRY) increased the lower end of its fiscal 2026/27 underlying operating-profit forecast for continuing operations to £1.025 billion, with the upper end unchanged at £1.065 billion. The comparable previous range was £965 million–£1.065 billion after removing Argos. First-half 2026/27 continuing sales excluding fuel rose 2.6% to £13.96 billion, while underlying operating profit increased 3.6% to £525 million.

The improvement contrasts with a statutory after-tax loss of £164 million, which included a £376 million loss from discontinued operations. Argos is treated as discontinued following the previously agreed disposal; that transaction is not yet complete. Sainsbury’s generated £333 million of free cash flow and retained its expectation of more than £500 million for the full year. Second-quarter like-for-like sales excluding fuel grew 1.2%, slower than the preceding quarter’s 2.3%.

Sources:

• RNS via Investegate
• RNS via Investegate — announcement index