Tesco Profit Falls as U.K. Sales Drop Worsens

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April 16 (Bloomberg) –- Bloomberg’s Caroline Hyde reports on earnings for the U.K.’s largest retailer which reported a second straight decline in annual profit after sales slumped. She speaks to Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Just getting some earnings from tesco.

Looking at third quarter u.k. performance, it's worse than expected.

Like for like sales down three percent.

That is more than two and a half percent.

That is the worst quarterly sales performance we have seen in his re-year tenure.

Clearly the environment is not getting any better.

They say the environment is challenging.

Trading profit fell for a second straight year, down six percent, but not quite as bad as expected.

We are seeing 3.3 2 billion pounds.

It the estimates.

It is still down for a second straight year.

-- it beat estimates.

Convenience stores is up 1.1% in terms of sales.

We can see the areas they are having to focus on are the areas of growth.

They have taken a write-down of more than a half a billion pounds on china.

That had been anticipated, saying, we are expecting them to have to take some sort of hit to the value of the premises.

They are investing in a retail partnership.

A new vendor.

They have taken a hit, but that's probably to be expected.

They are sticking to scaling back in terms of new bills.

Continuing to upgrade their stores.

They pumped one billion pounds into making this -- -- the staff better train.

It's meant to make it more of a destination.

About 300 stores have been updated.

Sales tend to go up at three to five percent.

They are taking time to drive that through.

This text has been automatically generated. It may not be 100% accurate.

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