THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Tesco says profit forecast was overstated by £250 million

Tesco has initiated a review after finding that it has overstated its expected half-year profit by £250 million.

GENERAL MERCHANDISE

Tesco says profit forecast was overstated by £250 million

In a trading statement issued today, the supermarket giant said it identified the overstatement during final preparations for its forthcoming interim results, adding that the error was “principally due to the accelerated recognition of commercial income and delayed accrual of costs”.

Tesco also said the overstatement, which relates to profits for the six months to 23 August, was a result of in-year timing differences. Last month, Tesco said trading profit for the period was expected to be around £1.1 billion.

The supermarket has now asked accountancy firm Deloitte to undertake an “independent and comprehensive” review of the issues, while working closely with Freshfields, Tesco’s external legal advisers.

Work is ongoing to establish the extent of the issues and what impact they will have on the full year.

Tesco chief executive Dave Lewis, who joined Tesco earlier this month, said: "We have uncovered a serious issue and have responded accordingly. The chairman and I have acted quickly to establish a comprehensive independent investigation.  The board, my colleagues, our customers and I expect Tesco to operate with integrity and transparency and we will take decisive action as the results of the investigation become clear."

Last month Tesco also said that full-year profit was expected be £2.4 billion to £2.5 billion, down from its previous forecast of £2.8 billion, as it revealed that Lewis would join the group a month early. He succeeded previous chief executive Philip Clarke who stepped down after a series of profit warnings.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing