Executive Summary

• Tesco reported 1Q20 group sales of £13.98 billion, up 0.4% at constant exchange rates and as reported. Group comps were below consensus.
• The company’s UK same-store sales grew 0.4%, compared to 1.7% growth in the previous quarter and missing the consensus of 0.8%.
• Declining sales in Poland, store closures, fewer trading days and cooler weather across the region negatively impacted Central Europe sales.