Advertisement

Wednesday preview: Next and Sainsbury report

Next is expected to report retail sales growth when it unveils its first quarter results Wednesday, according to Panmure Research.

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.

Advertisement - Article continues below

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.

Advertisement
Advertisement - Article continues below

"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.

Advertisement - Article continues below

"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)

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Eagle Lightweight GT: the reincarnation of the E-type Jag
Toys and gadgets

Eagle Lightweight GT: the reincarnation of the E-type Jag

Jaguar’s classic E-type sports car has been reinvented for the modern age. The result – the Eagle Lightweight GT – is a thing of beauty.
7 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
Don’t despair on dividends – these companies could be set to bring them back
Income investing

Don’t despair on dividends – these companies could be set to bring them back

The value of dividends paid out by UK stocks has plummeted this year as companies “rebase” their payment policies. But things could soon start to look…
6 Aug 2020