Sainsbury’s Raises Profit Guidance and Sells Argos to Swift Partners

Sainsbury’s raised the lower end of its full-year underlying operating profit guidance to between £1.025 billion and £1.065 billion. The company reported a 3.6% increase in first-half underlying operating profit to £525 million, supported by a 2.9% rise in grocery sales to £13.2 billion. This growth was driven by volume increases and pricing initiatives, including Nectar Prices and the Aldi Price Match scheme.

Despite the grocery gains, the retailer saw a 3.4% decline in general merchandise and clothing sales. Fuel sales increased 17.8%, a surge attributed to global oil price hikes linked to the Iran war. Shares fell nearly 4% after a deceleration in like-for-like sales growth was observed.

Statutory results showed a loss after tax of £164 million, largely due to a £376 million loss from discontinued operations. As part of a strategy to sharpen its focus on food, the company is selling Argos to Swift Partners for at least £120 million. The transaction is expected to close by February 2027.