Tesco reports second straight quarter of UK sales growth

LONDON, June 23 (Reuters) - Tesco (Xetra: 852647 - news) , Britain's biggest retailer, on Thursday reported a second successive quarter of UK underlying sales growth, the first time it has done so in over five years, indicating the firm is making steady progress under Chief Executive Dave Lewis.

Tesco said sales at stores in its home market open over a year rose 0.3 percent in the 13 weeks to May 28, its fiscal first quarter.

That compared to analysts' forecasts of flat to up 0.5 percent and built on growth of 0.9 percent in the previous quarter - its first quarter of underlying UK sales growth for over three years.

Group like-for-like sales grew 0.9 percent.

"We are encouraged by the progress we are making," said Lewis.

"I am confident that the improvements we are making for customers are working and will create long-term value for our shareholders."

(Reporting by James Davey; editing by Sarah Young)