Tesco first half profit drops on high turnaround costs
London -- British retailer Tesco reported Wednesday that profit dropped 6.8% in its first fiscal half to $2.06 billion, weighed down by costs associated with its turnaround strategy.
Revenue for the period inched up 1.6% to $51.9 billion, but costs were up as well for the world’s third-largest retailer. Same-store sales fell off 0.7%.
"The plan is a long course of treatment for us, not a single dose," new CEO Philip Clarke said of the turnaround plan.
Tesco’s U.S. venture is Fresh & Easy, which has yet to turn a profit.