Supermarket chain Asda has reported a 6.6% growth in total revenues, excluding fuel, amounting to £5.3bn ($6.7bn) for the first quarter of fiscal year 2024 (Q1 FY24).

The company's like-for-like sales also saw an increase of 1.4% in the quarter ending 31 March 2024.

Revenue growth for the quarter was bolstered by a strong performance from its clothing line, George at Asda, which increased its total clothing revenues by 3% to £293m.

George grew its like-for-like sales by 3%, with customers responding well to the brand’s focus on price, style and quality.

The company’s Q1 2024 trading update also revealed that schoolwear and homewares were particularly successful with sales growth of 11% and 11.7% respectively in Q1 FY24.

Asda experienced a 1.3% rise in like-for-like grocery sales.

Its online grocery segment accounted for 18% of food sales, driven by a 5.6% increase in average weekly orders.

Over the quarter, Asda refinanced more than £3.0bn of debt net debt, ending the quarter with net debt of £3.8bn.

Asda co-owner Mohsin Issa said: “Asda made good progress against its strategy in the quarter, laying the foundations for long-term success – including completing the conversion of our newly acquired sites to Asda Express, as part of our strategic expansion into the growth markets of convenience and food-to-go.”

Earlier in 2024, Asda matched the discounters Aldi and Lidl on the price of more than 280 household staples, resulting in an average price reduction of 17%.

Asda then announced further price cuts on hundreds of products worth £70m, averaging an 11% decrease.

In addition, the supermarket chain announced a £150m investment in retail pay, which will see hourly rates for store colleagues in Asda Retail and Asda Express increase by 8.4% to £12.04 from 1 July 2024.

In March, Asda opened its largest On the Move store on EG Group’s London Road forecourt in Retford, Nottinghamshire.

"Asda quarterly revenue climbs 6.6% in Q1 FY24" was originally created and published by Retail Insight Network, a GlobalData owned brand.

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