Sainsbury’s clothing sales sparkle in H1

Core Insights - Sainsbury's reported a 5.2% increase in sales and a retail underlying operating profit of £504 million for the period ending 13 September 2025, with statutory profit after tax rising to £165 million from £76 million in the previous half-year [1] - Tu Clothing achieved a sales growth of 7.8% in H1, outperforming the market for the fifth consecutive quarter, attributed to improvements in product range, availability, and strong online performance [1][2] - Sainsbury's anticipates a retail underlying operating profit exceeding £1 billion and retail free cash flow over £500 million for the 2025/26 period [2] Financial Performance - The company recorded a statutory profit after tax of £165 million, significantly up from £76 million in HY 2024/25 [1] - Retail underlying operating profit for the period was £504 million, indicating strong operational performance [1] Strategic Initiatives - Sainsbury's focused on maintaining a strong competitive position through effective investment to alleviate cost-of-living pressures, keeping price inflation below the market average [3] - The company emphasized product innovation and fresh food availability during peak demand periods, contributing to market share growth and improved profitability at Argos [4] Market Outlook - Sainsbury's expressed confidence in its momentum heading into the competitive Christmas season, strengthening its profit guidance [5] - The company aims to sustain grocery volume growth ahead of the market for the fifth consecutive year [3]