J Sainsbury Maintains Strong Retail Momentum; Confirms Profit Guidance with Enhanced Cash Flow Outlook

tx_pending_forever · 2026-01-12T18:25:02+00:00

J Sainsbury plc reported resilient third-quarter trading, with retail sales up 3.9% year-on-year. Despite a slight growth moderation post-festive season, the company reaffirmed its profit guidance and raised cash flow expectations, prioritizing shareholder returns.

tx_pending_forever

2026-01-12 18:25:02

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J Sainsbury plc (SBRY.L, JSAIY.PK) has disclosed its third-quarter trading performance, demonstrating resilience in the UK retail sector. The supermarket operator posted encouraging sales figures for the 16-week period ending January 3, 2026, with total retail sales excluding fuel advancing 3.9% year-on-year. The underlying performance was equally solid, with like-for-like sales climbing 3.4% over the same interval.

The most recent six-week trading window showed a moderation in growth, with total retail sales ex-fuel reaching 3.3%, suggesting a normalisation of consumer purchasing patterns as the festive season concluded. Despite this seasonal adjustment, the group remains confident in its full-year trajectory.

On the earnings front, J Sainsbury reaffirmed its full-year guidance for fiscal 2025/26, projecting that retail underlying operating profit will exceed 1 billion pounds. This confirmation underscores management’s confidence in achieving profitability targets despite macroeconomic headwinds affecting the retail landscape.

The company has raised its cash generation outlook, now expecting retail free cash flow to surpass 550 million pounds—an upward revision from the prior guidance of more than 500 million pounds. This enhanced projection reflects improved operational efficiency and working capital management throughout the trading period.

Capital allocation remains a priority for shareholders. J Sainsbury maintains its commitment to return in excess of 800 million pounds to investors during the financial year, comprising ordinary dividend distributions, a 250 million pounds special dividend, and a 250 million pounds share repurchase programme. This comprehensive capital return demonstrates the group’s commitment to shareholder value creation alongside its underlying operational improvements.

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