This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Morrison recorded a rise in a third quarter (Q3) sales of 5.6%, but slower growth than many analysts expected of around 1.3%, according to its most recent trading update.
Analysts were expecting to see the supermarket chain record sales growth of around 1.8%, which is what the company posted during its first quarter. Sales in the company’s second quarter gained a boost from the summer heatwave in the UK and the FIFA World Cup, the company said.
‘After another period of strong growth, and with more customers enjoying shopping at Morrisons, we have now completed three years of positive like for like,’ Morrisons CEO David Potts said.
‘Our exceptional team of food makers and shopkeepers are providing good quality food at great prices, and building a broader offer in store, online and for our wholesale customers,’ he added.
Driving sales for Christmas
Morrisons continued with its pace of opening new stores, with the company opening its third new supermarket in Acocks Green, Birmingham, and is performing well, the company said.
The supermarket chain continues to roll out new stores under its ‘Fresh Look’ programme, with developments getting a face lift and new branding. Morrisons has refurbished a further 60 stores as it gears up for Christmas.
The company is looking forward to a ‘busy festive period’, with the supermarket already seeing success in terms of sales of its Christmas products.
Morrisons share price has performed relatively well, with it hovering at around 244p, climbing from 204 levels back in late-March.
By comparison its share price has outperformed rival Tesco, but has struggled to gain ground on Sainsbury’s, which will report its half year results on Thursday.
.jpg)
