British supermarket group Tesco says its sales rose 7.8 percent in the 13 weeks ending May 28 despite a relatively subdued performance in its home market.
Tesco, the world's third-largest retailer, said Tuesday that overall sales excluding petrol were up 6.7 percent compared to a year earlier.
Its British operations underperformed, with sales there up only 3.4 percent on a same-stores basis. When taxes and petrol sales were excluded, sales were actually down 0.1 percent in Britain.
The company's performance in Britain was likely to have been distorted by the royal wedding, which was a public holiday. Tesco's trading statement did not comment on the impact of the extra holiday.
Philip Clarke, Tesco's chief executive, said high fuel costs contributed to the sluggish U.K. performance.
"Customers have to direct some of their spending to petrol at the expense of their normal shopping and this remains a drag on both industry and our own like-for-like growth," Clarke said.
Tesco shares were down 1.2 percent at 402.4 pence in early trading on the London Stock Exchange.
"A cocktail of anemic U.K. numbers, high expectations and a market in little mood to take prisoners have conspired to mark the shares down in early trade," said Richard Hunter, head of U.K. equities at Hargreaves Lansdown Stockbrokers.
Tesco's Fresh & Easy venture in the United States reported sales up 11 percent on a same stores basis, or 22 percent higher including recently opened stores.
Like-for-like sales excluding petrol were up 3.2 percent in Asia and 2 percent in Europe, Tesco said.