J Sainsbury's stock rallied after the group released its first-quarter trading update prior to the London open, with investors responding positively to a broadly in-line trading performance and an unchanged full-year profit outlook. The shares rose 2.1% to trade at 322.5p, touching an intraday high of 326.7p before settling back to 322.5p - comfortably above the previous close of 315.8p.
For the 16 weeks to June 20, 2026, Sainsbury reported like-for-like retail sales excluding fuel up 2.1%. On a total basis, retail sales excluding fuel increased 2.7% over the same period, a result the company attributed primarily to grocery volume growth.
Crucially for the market reaction, Sainsbury reiterated its expectation for total underlying operating profit for the full year to remain in the range of £975 million to £1.075 billion. The confirmation of guidance appeared to address investor concern that the slowdown in like-for-like momentum - which came in below the analyst consensus of roughly 2.7% and decelerated from 3.1% in the prior quarter - might force a downgrade.
Broken down by category, grocery sales rose 3.6% year-on-year, reflecting continued progress in market share. By contrast, general merchandise and clothing declined 3.7%, while Argos sales were down 0.5% and were highlighted as ongoing soft spots. The group’s active £300 million share buyback programme also remained in place and was cited as a supporting factor for the share price.
Market context helped frame investor sentiment. Sector peer Tesco reported similarly sluggish like-for-like growth in its recent update, suggesting the slowdown is industry-wide and linked to tough year-ago comparables and easing food inflation rather than a Sainsbury-specific setback. That comparative backdrop appeared to temper market disappointment at the lower-than-consensus like-for-like number.
Analyst positioning ahead of the results also shaped reception. Bernstein, which had reiterated a preference for Tesco over Sainsbury in the run-up to the update, had kept expectations subdued; in that context the maintenance of guidance was received as relatively positive by the market.
The wider UK index environment provided little directional push - the FTSE 100 had closed nearly flat in the prior session - indicating that the move in Sainsbury shares was largely driven by company-specific news. Taken together, the combination of a broadly in-line sales print, a reaffirmed profit outlook, and continued grocery market share momentum was sufficient to prompt an intraday re-rating.
What happened to the share price? The stock rose to a day high of 326.7p before easing to 322.5p, up from the previous close of 315.8p.
Key financial signals
- Like-for-like retail sales excluding fuel: +2.1% for the 16 weeks to June 20, 2026
- Total retail sales excluding fuel: +2.7%
- Grocery sales: +3.6% year-on-year
- General merchandise and clothing: -3.7%
- Argos: -0.5%
- Full-year underlying operating profit guidance: £975 million to £1.075 billion (reaffirmed)
- Ongoing share buyback: £300 million