By Saabira Chaudhuri
LONDON--Britain's largest retailer, Tesco PLC, posted a smaller-
than-expected drop in same-store sales for the first quarter, in a
sign that its turnaround plan is beginning to bear fruit.
The company reported U.K. same-store sales excluding petrol in
the three months through May 30 fell 1.3% from a year earlier,
which is better than the 2.3% drop forecast by analysts at
Barclays. International sales dropped by 1%, leaving Tesco with an
overall decline of 1.3%.
Under new Chief Executive Dave Lewis, Tesco has been working to
regain some of the traction it had before a period of slumping
sales hammered profit, while the company's reputation was tarnished
by an accounting scandal. In April, Tesco reported the steepest
ever full-year loss for a British retailer amid a raft of charges,
capping the most tumultuous year in its 96 year history.
On Friday, Tesco said more customers were shopping at Tesco, and
that service had improved as had product range.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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