LONDON – Tesco shares have plunged 16 percent after the supermarket giant warned that its full-year profits will be significantly below market expectations.
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The company, one of the world's biggest retailers, said trading profits for the year to February will not exceed 1.4 billion pounds ($2.2 billion), far below market forecasts of about 2 billion pounds.
New Chief Executive Dave Lewis said the latest warning reflected the impact of steps being taken to overhaul the company in the wake of an accounting scandal revealed in September.
An investigation is underway into why Tesco's half-year profit was overstated by some 250 million pounds. Eight executives were suspended amid the probe.
Tuesday's announcement was the fourth time this year that Tesco warned on profit.