Tesco Slashes Dividend After Second Profit Warning In Two Months
Tesco will slash its dividend and investment spending to give its new boss more firepower to rebuild Britain’s biggest retailer, after a second profit warning in two months showed the scale of the task he faces. The grocer said on Friday that as a result of its worsening performance, former Unilever turnaround specialist Dave Lewis would start on Monday – a month earlier than planned – with a remit for a major review of the 95-year-old business. Jo Rundle, Head of Trading at ETX, described the move as alarmist but necessary: The latest profit warning lays bare the need for a change at a company once considered an unstoppable engine of growth, with annual trading profit now expected to come in around 25 percent lower than last year – a third straight year of decline.
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