Tesco has just issued a profit warning, lowering its profit forecast from 2.8 billion pounds (3.53 billion euro) to 2.4 billion pounds (3.02 billion euro), while also dialing down on investments.
New CEO starts work earlier
The profit alert was also joined by the news that the new CEO, Dave Lewis, would start his job on Monday, a month earlier than previously announced. Shareholders' dividends have been lowered 75 % compared to the year before, a 600 million pounds (755 million euro) saving for Tesco.
The company will also lower funds for investments to a maximum of 2.1 billion pounds (2.64 billion euro), 400 million pounds (503 million euro) lower than previously stated and 600 million pounds (755 million euro) lower than a year before.
"The Board's priority is to improve the performance of the Group. We have taken prudent and decisive action solely to that end", chairman Sir Richand Broadbent said.