Tesco shares tumble on shock profits warning

Tesco today released an unplanned update to the market, sending shares tumbling in early trading after it slashed its dividend by 75% and warned on profits.

Ahead of its scheduled update due at the start of October, the group said the "combination of challenging trading conditions and ongoing investment in our customer offer" has continued to impact the group's performance. As a result, the board has revised its outlook for the full year, as well as taking an axe to its dividend. In reaction, shares tumbled around 10% at the opening bell, falling as low as 222p, before settling down 8.5% at 225p. Other supermarkets were also under the cosh as a result, with Morrisons, Sainsbury and Marks & Spencer all down between 3-4%. Tesco, the U...