Sainsbury’s has raised the lower end of its full-year profit forecast after grocery sales grew during the first half, although its clothing business continued to face a subdued market.
The supermarket group reported a 2.9% increase in grocery sales to £13.2 billion for the 28 weeks to 12 September 2026, supported by volume growth and lower inflation. Total revenue, including fuel, rose 4.1% to £16.2 billion.
Sales from continuing operations, excluding fuel, increased 2.6% to £14 billion. However, general merchandise and clothing sales fell 3.4% to £777 million, reflecting reduced general merchandise space in stores and what Sainsbury’s described as a “subdued clothing market”.
The retailer said its Tu clothing business outperformed the wider clothing market during the first half, with improvements in style perceptions and product availability. Back-to-school sales rose 8% year on year, marking its strongest performance in the category to date.
The results follow a June trading update in which Sainsbury’s reported a 2.1% decline in Tu sales over the 16 weeks to 20 June, citing tough comparisons with the previous year.
In September, Tu launched its autumn/winter 2026 collection, placing greater emphasis on premium fabrics, knitwear and outerwear. The range includes cashmere, mohair and alpaca knitwear, alongside statement coats and occasionwear.
Underlying operating profit from continuing operations rose 3.6% to £525 million, supported by sales volume growth, cost savings and investment in value, quality, availability and service.
Sainsbury’s now expects full-year underlying operating profit from continuing operations of between £1.025 billion and £1.065 billion, raising the lower end of its forecast. Its previous guidance, adjusted to exclude Argos, was £965 million to £1.065 billion.
In July, Sainsbury’s agreed to sell Argos to Swift Partners, a company established by retail experts including former Co-operative Group boss Richard Pennycook, for at least £120 million. The deal is expected to complete by the end of February 2027, with full separation planned by February 2029.
Chief Executive Simon Roberts said: “We know many households are finding things tough at the moment and we’re making it easier for customers to enjoy good food every day, whatever their budget.”
He added: “Through Nectar Prices and the biggest Aldi Price Match in the market, Sainsbury’s is helping customers save on the products they buy most often.”
Roberts said the retailer was continuing to sharpen its focus on food as it progresses the Argos sale, adding that it was looking forward to helping customers enjoy “a really special Christmas”.