Tesco's performance outside the UK was more encouraging. Its international sales grew by 8.2%, or 5% after currency fluctuation was factored in.
The retailer insisted it had seen "strong performances" in all three regions - Asia, Europe and "particularly" the US. Yesterday, Tesco said it would mothball 12 of its Fresh & Easy stores in the US after sales at the outlets were not high enough to keep them open.
In the US, Tesco's sales jumped 41% during the period, with like-for-likes increasing 19.3%. In Asia, sales were up 7%, although Tesco acknowledged its like-for-like sales growth was "modest" as the Thai economy recovered after last year's floods. In Europe, sales increased 2%. Like-for-like sales were up 1%, excluding fuel. Across the group, sales were up by 2.9%.
Looking ahead, Tesco cautioned that its trading profits would be at the bottom end of expectations and warned growth would be "minimal" in its next financial year.
"In a challenging consumer environment at home, and with early signs of more cautious behaviour emerging elsewhere, we have seen more strain than anticipated on our profitability during the important seasonal trading period," Tesco said. "As a result, while underlying profit before tax and earnings per share for 2011/12 will be broadly in line with market consensus forecasts, we expect group trading profit growth to be around the low end of the current consensus range."
It added: "Our plan for 2012/13 now reflects substantially increased investment to deliver an even better shopping trip for customers - particularly in the UK. Consequently, we anticipate minimal group trading profit growth for the year."
Shares in Tesco fell by more than 15% this morning (12 January) after the retailer reported another fall in UK sales and warned profits would not grow as fast as expected in its current financial year and in the next 12 months.
Tesco, which has seen its underlying UK sales fall for four successive quarters, revealed another slide in domestic sales for the Christmas period.
Warren Buffet has increased his stake in British supermarket Tesco after the chain issued a profit warning following poor Christmas trading figures.
Almost £5 billion was knocked off the chain's capitalisation value and the poor performance over the festive season has prompted the supermarket to reassess its business structure.
Buffett, one of the world's leading investors, bought around £480 million worth of shares in the chain following the dip in value - increasing his stake from 3.21 per cent to 5.08 per cent.
As a respected investment expert, Buffett's decision to mop up cheaper Tesco shares caused an upward shift in their value almost immediately. For the latest updates on the stock market, visit Stock Market Today
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