London, June 18 - J Sainsbury Plc, Britain's third-biggest supermarket group, posted first-quarter underlying sales towards the bottom end of analysts' forecasts, but said its full-year expectations remained unchanged.
The company, which runs over 500 supermarkets and more than 300 convenience stores, said on Wednesday sales at shops open more than a year rose 3.4 percent, excluding fuel sales, in the 12 weeks to June 14.
Forecasts ranged from 3.2 to 5.0 percent, with an average of 3.8 percent, according to a Reuters poll of nine analysts.
Sainsbury's performance is the weakest of the recent sales numbers to be reported by Britain's top four grocers.
Market leader Tesco reported a 3.5 percent rise in comparable sales for the 13 weeks to May 24. Number two Asda, owned by U.S. giant Wal-Mart, delivered a 6.4 percent rise for the three months to March 31 and number four Wm Morrison a 7 percent increase for the 13 weeks to May 4.
Sainsbury's sales growth compares with a 4.1 percent rise in the fourth quarter and a 5.1 percent increase in the first quarter of its last financial year.
"Whilst we anticipate that the environment will remain challenging, we operate from a strong financial position and our expectations for the full year remain unchanged," Chief Executive Justin King said in a statement.
Sainsbury shares have underperformed the DJ Stoxx European retail index by about 5 percent this year. They closed at 336 pence on Tuesday, valuing the business at about 5.9 billion pounds ($11.6 billion).