Tesco Lowers Profit Outlook After Holiday Sales Disappoint

Tesco Plc, the U.K.’s largest supermarket chain, reported Christmas sales that missed analyst estimates and reined back profit expectations after competitors’ promotions proved more popular than its Big Price Drop campaign.

Tesco fell 16 percent, the most since at least 1988, after saying profit will be at the “low end of the current consensus range,” while next year will see “minimal” growth in earnings. U.K. sales at stores open at least a year fell 2.3 percent, excluding fuel and value-added tax, in the six weeks ended Jan. 7, worse than the median estimate of 10 analysts compiled by Bloomberg for a 1 percent decline.