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Sainsburys shares tumble

Oct 8 2008

Sainsbury’s saw its shares tumble today after analysts worried that strong trading figures from the supermarket chain will be as “good as it gets”.

The company posted like-for-like sales growth of 4.3% for the 16 weeks to October 4, which was slightly better than market expectations.

But analysts seized on chief executive Justin King’s comments that the economic environment was “particularly challenging” and that the company expected this to continue throughout the second half.

Panmure Gordon stockbrokers said today’s figures were above expectations. “However, we think that this is as good as it gets and see margin pressure evolving over the next 12 months,” it added.

The stock was down by more than 10% in a depressed market.