Tesco has stated that it does not expect group trading profit to exceed £1.4bn for the financial year, in an unscheduled trading statement.
This is below the £1.8bn to £2.2bn range expected by markets.
In a trading statement released this morning referring to the financial year ending February 2015, the struggling supermarket giant outlined plans to take a new “commercial approach”, which would aim to establish stronger relationships with suppliers.
It also said it had increased product availability on key lines to enhance its customer offer.
Dave Lewis, chief executive, said: “Tesco is focused, and will continue to focus, on doing the right thing for customers. This means running our business in a way that everything we do creates sustainable value. Whilst the steps we are taking to achieve this are impacting short-term profitability, they are essential to restoring the health of our business. We will not engage in short-term actions that compromise in any way our offer for customers.
“We still have much to do, but are making good progress in developing our plans to improve the long-term positioning of the group and I will share more of that on 8 January.
“Our priorities remain restoring competitiveness in the UK, protecting and strengthening the balance sheet and rebuilding trust and transparency. For now, all the Tesco team is focused on delivering the best Christmas for customers.”
Since the profit warning, shares for Tesco have taken a hit, plunging 11.51% to 165.75p at the time of publication.