Has Dave Lewis finally dragged Tesco back into the black?

The chief exec has been under pressure to show that his turnaround efforts are paying off.

by Rebecca Smith
Credit: Tesco
Credit: Tesco

Dave Lewis could finally be reaping the rewards from his 2014 turnaround plan, according to some pretty positive analysts’ predictions. Tesco is expected to reveal a return to full-year profits and its first quarter of underlying sales growth for more than three years in its results on Wednesday.

House broker Barclays is predicting a 0.8% increase in sales at established UK stores for the three months to Feburary – maintaining the momentum from an unexpected 1.3% rise in underlying sales over Christmas.

The supermarket is expected to post pre-tax profits of £447m for the year to the end of February – a big improvement after announcing one of the biggest losses in UK corporate history last year - a massive £6.4bn. Though it’s still a fair way from clambering pack to its former perch. The improvement in profits is predominantly be due to not having to deal with the hefty impact of the £4.7bn of property write-downs Tesco took the year before, when fewer customers visited its out of town supermarkets.

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