J Sainsbury PLC (LSE:SBRY) backed its full-year outlook despite reporting a slowdown in sales growth over Christmas.
“We have outperformed the market every week of this financial year and delivered volume growth ahead of the market for a fourth consecutive Christmas,” the FTSE 100-listed firm said.
The food retailer said third-quarter grocery sales rose 9.3% although this rate eased to 8.6% in the six weeks to 6 January with stronger volumes offsetting lower inflation.
Total retail sales rose 6.5% in the third quarter and by 4.9% in the six-week period.
Sainsbury said it continues to expect underlying profit before tax in 2023/24 of between £670 million and £700 million, with a strong grocery performance offsetting weaker general merchandise and financial services contributions.
Third-quarter general merchandise sales slipped 0.6%, accelerating to 3.7% in the six-week festive period while clothing sales tumbled 6.0% over Christmas and 1.7% for the quarter as a whole.
Sainsbury said it continues to expect to generate retail free cash flow in 2023/24 of at least £600 million.