J Sainsbury (LSE:SBRY) shares climbed 2.5% to 323.8p, after reporting total retail sales excluding fuel up 4.2% in the first quarter of its 2026/27 year.
Like-for-like sales excluding fuel rose 3.8% over the 16 weeks to 20 June, with fresh food outpacing the wider market and grocery online continuing to accelerate.
General merchandise and clothing dragged in the opposite direction: Tu Clothing fell 2.1% against tough prior-year comparatives, while Sainsbury's general merchandise dropped 6.3%, partly by design as the retailer deliberately reduces non-food floor space in favour of food ranges.
Argos volumes grew 2.2% but average selling prices fell, leaving total Argos sales down 0.5% as consumers shifted toward lower-ticket items.
Full-year guidance was reiterated without change: total underlying operating profit of between £975 million and £1,075 million, with retail free cash flow above £500 million.
"We have had an encouraging start to the year but the impact of the conflict in the Middle East on our customers and our business remains uncertain," said chief executive Simon Roberts.
Sainsbury's interim results for 2026/27 are scheduled for 22 October.
