Tesco Reveals the Extent of the Global downturn

In a sober report Tesco revealed lower profits from a number of write downs initiated by the new CEO in an attempt to back track on his predecessors enthusiastic growth ideas. Over £2bn of write downs as they close the US business and halt a large number of planned expansions in the UK. That hit profits and sifting through the detail sales were down in every market unlike previous results which had shown growth outside the UK. Europe is very bad. Below is their positive take, but it ignores much. My impression is that Philip Clarke has finally taken a deep breath and plunged into restructuring of a significant scale as he realizes his predecessors approach does not match the current economic condition. Still a good investment due to strong stable price and good dividend.

£3.5bn trading profit – year-on-year performance largely reflects UK reinvestment  Final dividend maintained at 10.13p, giving full-year dividend of 14.76p 
 Good progress in the UK, delivering improved results – for customers and for Tesco 
 Strong online performance: Group sales of over £3bn for the first time – up 13% 
 Confirming exit from the United States – process well-advanced 
 F+F brand clothing sales now exceed £1bn in UK alone, with +9% LFL sales growth 
 Clear approach to future growth, capital expenditure, returns and cash, providing clarity 
for shareholders