Retail sector results are in spotlight
THE retail sector takes centre stage this week, with Morrisons and Argos owner Home Retail Group releasing figures, while online player Ocado gives its first update as a listed company.
The owner of Argos and Homebase chains Home Retail Group will reveal whether consumer sentiment is waning in its first update since the government’s deficit-busting budget was announced.
The group, which has 747 Argos stores and 347 Homebase stores, reported a bigger-than-expected slump in sales in the 13 weeks to May 29, due to weak demand for video games and televisions.
The firm will be hoping for a bounce back from a dismal first quarter, which saw like-for-like sales down at Argos and Homebase, 8.1 per cent and 1.4 per cent respectively.
The Thursday update is likely to reveal the impact on sales of the World Cup in June and July - although it did not appear to make a difference to sales in late May.
Home Retail previously said it was hopeful it will maintain profits on last year, which came in at 230 million, in the year ending February.
Chocolate chain Thorntons reports annual figures on Wednesday after a difficult year for the retail group.
The firm issued a profits warning in May and said its chief executive Mike Davies would retire in favour of a successor with “specific retail expertise”.
Its woes were compounded by the hot early summer weather, which made the traditionally quieter period even tougher on the firm.
Thorntons, which has 377 stores across the UK, revealed in July this caused sales declines to deepen, down six per cent in the 10 weeks to June 26, worse than the 4.6 per cent drop seen in the previous quarter.
The retailer said it was cutting 35 staff from its head office in Alfreton, Derbyshire, to cut costs as it looks to combat tougher trading.
Analysts are expecting the weak sales performance to have left underlying annual pre-tax profits down to 6.2 million from 6.3 million a year earlier.
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Thursday 24 May 2012
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