The week ahead: Dixons Carphone, Debenhams, Carpetright

A number of high-street retailers update the market in the coming days against a backdrop of weak retail sales and in the wake of DFS's recent profits warning.

Monday 26 June

Trading Statements

Monks Investment trust, D4t4 Solutions

AGM/EGM

Edenville Energy, BH Global Limited, Flowgroup, Galantas Gold Corporation, Hydro International, W Resources, Exillon Energy

Tuesday 27 June

We see updates from a pair of high-street retailers Tuesday, as pressure ramps up on the sector. A profits warning from DFS Furniture earlier in the month sent shockwaves through the market and investors will, no doubt, look for any read across to other companies.

While broker UBS has already pointed out the fall in retail sales is more likely to hit the big-ticket item sellers – DFS's average transaction value is a whopping £1,500 – it did note that Debenhams "looks to be suffering from the weaker UK clothing figure… and the threat to its health & beauty business from new competitors".

Watch its trading statement, also, for any financial detail on its new strategy, Debenhams Redesigned. While it updated on the strategy back in April, the all-crucial numbers were lacking.

After first-half results, UBS cut estimates for full-year 2017 pre-tax profit by 3% and by 4-6% for the following three years. Dividend cover of 1.7 times in FY18 is on the borderline of new management guidance and analyst Adam Cochrane reckons a cut could be forthcoming should there be a further consumer slowdown or increase in investment required.

UBS's target price of 50p was cut to 47p, slightly higher than the current level of 44p, but the broker has a 'sell' rating. Investec did similar, downgrading from 'hold' to 'sell' and slashing its target by 11% to 46p.

"The lack of [strategy] execution detail makes forecasting difficult," Kate Calvert explained. "It is hard to see any profit progression in the next three years [and] a 7% yield is not enough for the risk in our view."

Elsewhere, retail watchers will be busy, casting an eye over Carpetright's full-year results.

Trading Statements

Velocity Composites, Benchmark Holdings, Lakehouse, IG Design, BCA Marketplace, Findel, Polar Capital, Debenhams, Northgate, Carpetright, Porvair, IHS Markit

AGM/EGM

Hydrodec Group, Defenx, JZ Capital Partners, RhythmOne, Sovereign Mines of Africa, Gaming Realms, Coretx Holdings, Echo Energy, Mereo Biopharma Group, Regal Petroleum

Wednesday 28 June

Its mobile phone seller Dixons Carphone's turn to update the market with full-year 2017 preliminary results.

UBS has already pointed out its disappointment with the sale of its US joint venture to Sprint, as it says "the potential removal of one area of profit growth over the medium term is unhelpful".

"Stronger trading is possible this year, given a double-header of handset launches," it adds, "although we see a risk that political uncertainty will have some near-term impact on demand across the board for big ticket items."

Investec reckons Dixons is "well positioned heading into the full-year 2018 to make further market share gains with ongoing profit growth". Analyst Alistair Davies adds: "In our view, this is not reflected in the valuation or longer-term opportunities through connected world services".

Since that note a month ago, Dixons price has ticked gradually lower and is now a touch under £3. That means Investec's bullish target price of 405p gives potential upside of a third.

Trading Statements

Xafinity, Nextenergy Solar Fund, Imimobile, Creightons, Dixons Carphone

AGM/EGM

Medica Group, Katoro Gold Mining, EJV Investments, President Energy, BNN Technology, Air Partner

Thursday 29 June

Trading statements

Harwood Wealth Management Group, Cohort, ReNeuron, Purplebricks, Blur Group

AGM/EGM

Press Corporation, Independent Oil & Gas, Rockrose Energy, Nautilus Marine Services, P2P Global Investments, JD Sports Fashion, Strat Aero, Tiziana Life Sciences, Stobart Group, Blur Group, Westminster Group, Volvere, Beowulf Mining, Eland Oil & Gas, European Real Estate Inv Trust, Trader Media East, Strategic Minerals, Anpario, Serica Energy, Richland Resources, World Trade Systems

Friday 30 June

Trading statement

Schlumberger, TLA Worldwide

AGM/EGM

Hague And London Oil, Baron Oil, Auctus Growth, Alecto Minerals, Cogenpower, Fastjet, London Capital Group Holdings, JKX Oil & Gas, ImmuPharma, Megafon, Nostra Terra Oil & Gas Company

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.