WEEK AHEAD: Majestic Wine figures are looking flat
Retail and leisure will be in focus this week as some of the biggest names on the high street provide updates.
A SURPRISE profit warning in March has already taken the fizz out of Majestic Wine’s annual results today.
Analysts are expecting pre-tax profits of £23.6million on sales of £280.6million.
The firm, which has 193 stores, said that although like-for-like sales were up 2.8 per cent over the 10-week Christmas period, it had experienced challenging trading conditions since the start of the 2014 calendar year.
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COSTA owner Whitbread is expected to report a caffeine-fuelled first quarter trading update tomorrow.
Chief executive Andy Harrison (right) is expected to say Costa is growing sales by 3per cent.
That’s in addition to 8.5 per cent growth at its Premier Inn budget hotels and a 3.5 per cent increase at its Beefeater and Brewers Fayre pubs and restaurants.
Analysts at Barclays said: “Whitbread is an excellent investment for the UK macro economic recovery theme.”
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HOME shopping firm N Brown Group will update on first quarter trading on Wednesday.
Broker Peel Hunt expects the relaunch of plus-size brand JD Williams and other initiatives to have an impact by the autumn.
They expect first-quarter sales to be more subdued and look for growth of around 5 per cent.
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INVESTORS will be keen to hear Berkeley Group’s take on expected interest rate rises when the builder delivers annual results on Wednesday.
Broker Brewin Dolphin expects it to report sales of over £1.6billion and pre-tax profits of £370million.
It said in a note: “Berkeley appears to be going flat out at the moment, building on every one of its sites which has viable planning consent and vacant possession to take advantage of the current strength of the market.
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DEBENHAMS chief executive Michael Sharp on Friday is expected to focus on tightening its promotional strategy, as the retailer attempts to recover from a period in which profits fell 24.5 per cent to £85.2million in the 26 weeks to March 1.
The new strategy will see more clearly defined promotional periods in the trading calendar, with fewer days on promotion.
Investors also await news on a possible tie-up with Sports Direct International, after its owner Mike Ashley acquired an option to buy 6.6per cent of the department store earlier this year.
A partnership deal could see Sports Direct’s brands sold in Debenhams stores.
