The week ahead: A big one for retailers
It's a big week for the retailers, but investors will be nervous after another profit warning from Next. Housebuilders might provide some relief.
Monday 9 January
Ilika, Majestic Wine
Tuesday 10 January
Morrison (Wm) Supermarkets
Matomy Media Group
Wednesday 11 January
Joules Group, Pagegroup, Sainsbury (J), Tullow Oil, Taylor Wimpey
Thursday 12 January
A week after high street bellwether Next (NXT) shocked the market with a second profits warning in less than 12 months, retail rival Marks & Spencer (MKS), department store Debenhams (DEB), and online superstar Supergroup (SGP) all update the market Thursday.
Both M&S and Debenhams have been desperately trying to cut back on discounting, the latter since 2014, but its numbers have been poor and the share price has returned to multi-year lows.
A partial recovery at M&S has been unconvincing, and, ahead of its third-quarter trading update, one high-profile analyst is calling the shares down to 285p.
“Whilst we believe the initiatives are positive for the long-run health of the Clothing & Home (C&H) business, we believe the risk of disappointment in calendar 2017 is high,” said JP Morgan’s Georgina Johanan recently.
Don’t expect much from Debenhams’ Christmas trading update either. It’s been losing share to Next and Primark, and Deutsche Bank analysts say ‘sell’ and have just cut their price target from 60p to 52p.
Prospects are likely better at ASOS which publishes first-quarter results. It’s adding active customers and should benefit from a weak pound. It shares are expensive, however, and trades at a big premium to the retail sector.
Premier Oil, Tesco, SuperGroup, Marks & Spencer, Debenhams, Booker, Barratt Developments, Associated British Foods, Dunelm, Jupiter Fund Management, Hays, ASOS
Friday 13 January
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.