UK retailer Tesco has issued its third profit warning of the year and slashed its divident by 75 per cent, leading to an 8 per cent crash in shares and the announcement that new boss Dave Lewis will start next week, a month earlier than anticipated.
The company expects to make a trading profit of £2.4bn-£2.5bn (€3.14bn-€3.27bn) for 2014/15, down from earlier forecasts of £2.8bn (€3.52bn).
Tesco also revealed it was pumping less money into the business than planned – £400m less – by making IT savings and rolling out new stores at a slower pace.
The retailer's earlier profit warning, in July, put paid to Philip Clarke's three-year stint at the helm, the CEO having failed to prevent shoppers defecting to discounters Aldi and Lidl.
Chairman Sir Richard Broadbent commented: 'The actions announced today regarding capital expenditure and, in particular, dividends have not been taken lightly. They are considered steps which enable us to retain a strong financial position and strategic optionality.'
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