Talking Shop: Solid prints from Sainsbury’s and Picard

Research evidence excerpt

Talking Shop: Solid prints from Sainsbury’s and Picard

J P M O R G A N Europe Credit Research

03 July 2026

Talking Shop

Solid prints from Sainsbury’s and Picard

Europe Corporate Credit - Retailing Light on earnings and on significant newsflow, Euro Consumer and Retail

& Consumer Products

spreads were broadly unchanged this week with the exception of HY Food &

Beverage which tightened by 10bp, driven by both flavours of Flora notes. Neill Keaney AC

Excess and total returns for the IG and HY Retail and Consumer sub-sectors (44 20) 7134-2002

neill.keaney@jpmorgan.com

were positive again for June, echoing those of the broader market though

Alice Rossini, CFA

clearly trailed that of May. In this issue, we look at Sainsbury’s F1Q27 trading

(44 20) 7134 0478

update which, although relatively stronger than that of Tesco, does not justify alice.rossini@jpmorgan.com

SBRYLN paper trading inside that of TSCOLN. Thus we roll our J.P. Morgan Securities plc

recommended switch out of SBRYLN £’30s and into TSCOLN £’30s despite

a tightening of 18bp since we first recommended the trade (22 May).

Pricing as of 02 July 2026 at CoB UKT

with the exception of the tables on pages

2 and 3; pricing as of 01 July 2026, CoB

Soundbite of the Week: “It’s been an encouraging start to the year. Against

UKT

a lot of headwinds, we have continued to outperform the market and

we’ve grown volumes in grocery and at Argos... we’re confident we will

continue to outperform the grocery market.” – Simon Roberts, CEO

Sainsbury’s

This week we published updated thoughts on Picard post FY26 results. We were

comforted by Picard’s ability to manage margins and translate a 7% improvement

in EBITDA into positive FCF (€30m) and consequent deleveraging of 0.5x. Within