First Read: J Sainsbury PLC "Conference call feedback" (Buy) Mahamkali

Research evidence excerpt

First Read: J Sainsbury PLC "Conference call feedback" (Buy) Mahamkali

ly UBS Cons.

due to softer volumes driven by increased customer caution and tougher comps. SBRY 03/27E 23.97 23.84

expects c.1ppt volume outperformance vs the market. 4) Inflation: Inflation has eased 03/28E 27.26 26.75

modestly yoy and moderated vs Q4, although underlying pressures remain, particularly 03/29E 30.12 29.27

in fresh categories. SBRY sees potential for inflation to build into mid-summer; but

noted that broader industry expectations have been revised down, implying a more Sreedhar Mahamkali

Analyst

moderate trajectory overall, with limited near-term visibility. 5) GM/Argos: GM declined

sreedhar.mahamkali@ubs.com

-6.3%, reflecting planned space reallocation (-3%) to food and softer seasonal demand; +44-20-7568 8040

clothing remains a relative bright spot with potential to return to growth. Argos

delivered volume growth with negative sales driven by ASP dilution and promotional Yashraj Rajani, CFA

intensity, with demand remaining weak in higher-ticket categories. SBRY sees early

yashraj.rajani@ubs.com

progress in Argos transformation, with improved focus on range, digital and efficiency, +44-20-7901 5662

alongside growing cost and productivity opportunities, supported by AI, Supply Direct,

Angelo MangieriMarketplace launch later this year and Argos Pay launched through NewDay partnership

Associate Analyst

with >100k customers opening accounts since Feb'26 launch. 6) Guidance on profit

angelo.mangieri@ubs.com

and FCF is unchanged. SBRY remains confident in delivering operating profit growth +44-20-7567 7974

from a base of £1,045m, supported by volume outperformance, cost savings and strong

retail media momentum (on track for £100m incremental profit, with world cup benefits