J Sainsbury, Britain's third-biggest supermarket group, posted first-quarter underlying sales towards the bottom end of analysts' forecasts, but said its full-year expectations remained unchanged.
The company, which runs over 500 supermarkets and more than 300 convenience stores, said this morning sales at shops open more than a year rose 3.4 per cent, excluding fuel sales, in the 12 weeks to June 14th.
Forecasts ranged from 3.2 to 5 per cent. Sainsbury's performance is the weakest of the recent sales numbers to be reported by Britain's top four grocers.
Market leader Tesco reported a 3.5 per cent rise in comparable sales for the 13 weeks to May 24th.
Number two Asda, owned by US giant Wal-Mart, delivered a 6.4 per cent rise for the three months to March 31st and number four Wm Morrison a 7 per cent increase for the 13 weeks to May 4th.
Sainsbury's sales growth compares with a 4.1 per cent rise in the fourth quarter and a 5.1 per cent increase in the first quarter of its last financial year.
"Whilst we anticipate that the environment will remain challenging, we operate from a strong financial position and our expectations for the full year remain unchanged," Chief Executive Justin King said in a statement.
Sainsbury shares have underperformed the DJ Stoxx European retail index by about 5 per cent this year. They closed at 336 pence yesterday, valuing the business at about £5.9 billion ($11.6 billion).