Thursday preview: Olympic distraction to hit retail sales
UK retail sales data for August will include a 12-day period when the entire nation was apparently glued to the telly watching the Olympics.
UK retail sales data for August will include a 12-day period when the entire nation was apparently glued to the telly watching the Olympics.
Market expectations are for sales (including petrol) to have fallen 0.3% in August after rising 0.8% in July. The year-on-year (y/y) gain, however, is expected to widen to 3.0% from 2.8%.
Cash-and-carry retailer Booker issues a second quarter interim management statement, and Peel Hunt thinks the key will be a progress report on recently acquired rival Makro.
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
Peel Hunt forecasts like-for-like (LFL) sales growth in non-tobacco goods will have quickened to 4% in the second quarter from 3.8% in the preceding quarter. LFL sales of tobacco are expected to be down 1% y/y, though that represents an improvement on the preceding quarter's 1.7% decline.
Fags maker Imperial Tobacco (IMPs) releases full-year figures which are expected to reveal sales of £7.96bn, profit before tax of £2.47bn, earnings per share (EPS) of 199.85p and a full-year dividend of 104.58p.
Panmure Gordon expects the company to report a volume decline in cigarette stick sales of around 2% y/y, though price increases should lead to a 3% or so increase in tobacco revenues.
"We forecast that tobacco revenues in constant currency will increase by c.3.5% (or 1.9% on a reported basis) also reflecting an improvement from the 3% reported in the 9 months to 30th June," the broker said.
The same broker has turned its eye towards online grocer Ocado, and thinks its third quarter (Q3) sales update is likely to disappoint. "Despite a slow start to Q3 due to the Bank Holidays around the Diamond Jubilee, Ocado (as of the interims) still expected to see accelerated sales growth in Q3 and Q4. Given the likely impact of the Olympics upon sales, this now looks unlikely, as it always did," predicts Panmure Gordon, which is a seller of the stock.
"We are looking for 13% sales growth in Q3, but this looks to have downside risk. We believe that Ocado continues to underperform its multichannel competitors," the broker said.
INTERIMS
BrainJuicer Group, Moss Bros Group, Norcon, Tawa
INTERIM DIVIDEND PAYMENT DATE
Dragon Oil, First Quantum Minerals Ltd., Hochschild Mining, Mobeus Income & Growth Vct
QUARTERLY PAYMENT DATE
Royal Dutch Shell 'A', Royal Dutch Shell 'B'
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Consumer Confidence Indicator (EU) (10:00)
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (15:00)
Producer Price Index (GER) (07:00)
ANNUAL REPORT
NCC Group
IMSS
Booker, Ocado Group
AGMS
African Copper, Best of the Best, Games Workshop, GEONG International Ltd., NCC Group, New India Inv Trust, NWF Group, Supergroup, Trifast
TRADING ANNOUNCEMENTS
Imperial Tobacco Group
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Internet Retail Sales (09:30)
Retail Sales (09:30)
JH
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Review: The Store, Oxford – purveyors of excellence
MoneyWeek Travel The Store is a luxurious, new hotel in Oxford that has set up shop in a former department store in the heart of the city
By Chris Carter Published
-
Seven ways the Budget could hike inheritance tax or capital gains tax at death
Chancellor Rachel Reeves could target death taxes by raising IHT and/or levying CGT on inheritances. We look at some potential moves in the Autumn Budget
By Ruth Emery Published