Next is expected to report retail sales growth when it unveils its first quarter results Wednesday, according to Panmure Research.
The broker recommended a 'buy' rating, saying the UK retailer's online offering has put it in a prime position for growth.
"Our 'buy' rating is based on our long term view that Next will be a winner in the online race, given its historic and on-going investment in home shopping, which has put it miles ahead of the competition in multichannel retail," the analyst said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Panmure forecasts first quarter retail sales growth of between 1.5% to 2.0% and directory sales to rise 7.0%.
However, it anticipates flat full-year revenues in retail and an 8.0% jump in directory.
Credit Suisse last month said a slump in homewear sales is likely to drag on the company's performance.
While Next has started to prioritise its home division in advertising, the analyst believes the market requires a boost to housing transactions and secured credit before realising any material improvement in the category.
"While leading indicators are still positive there hasn't yet been sufficient signs of a pick up in housing activity in the spring for this to be the driver we originally expected this year," Credit Suisse said.
Also hogging the headlines Wednesday will be Sainsbury as it releases its full-year results.
The supermarket will report a 5.0% increase in earnings before interest and tax (EBIT) and an 8.0% rise in earnings per share, on pre-reported sales increase of 4.6%, according to Jefferies International. Pre-tax profits are pegged at £757m, driven by the grocer's ability to out-trade competitors.
"The benefit of Brand Match on overall value perception has provided a further anchor to solid sales performance," the broker said.
However, Jefferies said Sainbury's ability to deliver sustainable like-for-like outperformance is likely to reduce over the coming year given the increasing maturity of the non-food business.
The company will also probably address speculation around management changes including the resignation of its Chief Executive Officer Justin King, who has spent eight years at the helm.
"Regardless of changes in the leadership, we expect Sainsbury to engage more fully on calls for greater capex scrutiny," Jefferies added.
Wednesday May 8th
INTERIMS
Sage Group
INTERIM EX-DIVIDEND DATE
Aberdeen Asset Management, James Halstead, Miton Income Opportunities Trust, Regenersis, Smart (J) & Co., Spirit Pub Company
QUARTERLY EX-DIVIDEND DATE
BP, GlaxoSmithKline, IBM Corp., Unilever
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
Industrial Production (GER) (11:00)
MBA Mortgage Applications( US) (12:00)
FINALS
Sainsbury (J)
IMSS
CRH, Intu Properties, Promethean World, Resolution Ltd., Tullow Oil
SPECIAL EX-DIVIDEND PAYMENT DATE
Antofagasta, Fidessa Group
EGMS
Global Investment House KSCC GDR (Reg S)
AGMS
888 Holdings, BAE Systems, Bank of America Corp., Costain Group, CRH, GVC Holdings, HGCapital Trust, Hygea VCT, Melrose Industries, Mobeus Income & Growth Vct, Norsk Hydro ASA, Playtech Ltd., Promethean World, Rightmove, Ruukki Group (DI), Savills, Tullow Oil
UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
FINAL DIVIDEND PAYMENT DATE
British American Tobacco, Dialight, Fresnillo, JPMorgan American Inv Trust, Smith & Nephew, Synectics
FINAL EX-DIVIDEND DATE
Alent, Antofagasta, Bilfinger Berger Global Infrastructure Sicav S.A.(DI), Bunzl, Cape, CSR, Derwent London, EP Global Opportunities Trust, Fidessa Group, H&T Group, Henderson Group, Henderson Private Equity Inv Trust, Hochschild Mining, IS Solutions, JD Sports Fashion, Kingfisher, Laird, Macfarlane Group, Maven Income & Growth 3 VCT, Pendragon, Randgold Resources Ltd., Rightmove, Ted Baker
Q1
CSR, Next, Hellenic Telecom Industries SA ADS, Ruukki Group (DI)
RD
-
Private school fees soar and VAT threat looms – what does it mean for you?Rising private school fees could see more than one in five parents pull their children out of their current school. Before you remortgage, move house or look to grandparents for help, here’s what you need to know.
-
Best and worst UK banks for online banking revealedWhen it comes to keeping your money safe, not all banks are equal. We reveal the best and worst banks for online banking when it comes to protecting your money from scams
