Sainsbury’s Raises Profits Forecast Despite Falling Christmas Sales

Sainsbury’s, the UK grocery chain, boosted its entire earnings projection by at least 9% on Wednesday, citing better-than-expected food sales for Christmas, however, it fell short of its lofty expectations for the 2020 holiday season.

Even though the limitations for Christmas 2021 were less rigorous, grocers benefited immensely from customer fear of the Omicron variant’s spread, which kept them away from bars and restaurants.

The company is presently forecasting a full-year profit before tax of “at least” 720 million pounds in 2021-22.

Sainsbury’s reported a 16 percent drop in overall item sales year over year, owing to good results last year, restricted availability in key product sectors, and a focus on profitable sales, which included less advertising. Clothing sales decreased by 2.7 percent.

On controversy in trading, Sainsbury’s shares closed Tuesday at 279.3p, up 18% year to year.