Thursday preview: Burberry interims take to the catwalk

11th Nov 2015 13:35

(ShareCast News) - Since February's all-time high, Burberry's shares have fallen 31% as the market angsts about the effect of China's economic slowdown on consumer spending in Asia and on Thursday the company reports on its first half performance.After a slight bounce since mid-October Burberry shares tripped further down on Tuesday on the back of a weak update from luxury group Richemont, where Asia-Pacific sales dropped 17% in the six months to 30 September at a constant exchange rates basis, or just 3% thank to forex.Richemont said it suffered a "significant" sales decline in Hong Kong and Macau although sales in mainland China returned to growth.Burberry already disappointed the market with a first-half trading update on 15 October, with forward guidance for the second half would see comparable store sales growth in mid-single digits based on bottom-up internal forecasts by region.This outlook has been met with some scepticism by investors, UBS noted."The results meeting will therefore provide another important opportunity for management to convince that the scope for self-help initiatives will be sufficient to help drive this desired topline performance."Also important will be the willingness of Management to contemplate a structurally lower spend level if the environment remains more challenging than hoped."UBS forecasts a 7% fall in adjusted pre-tax profits to £142m, while for the full year the consensus forecast is for sales of £2.58bn, operating profits of £436.4m and EPS of 74.1p.Macroeconomic newsEurozone industrial production, excluding construction, is expected to show a slight 0.1% rise for September after the 0.5% fall in August, on the back of a small rebound in Germany, Spain and Italy.Closer to home, the UK house price balance from the Royal Institution of Chartered Surveyors is also dueBalance was 44 last time and the consensus forecast is for it to rise to 46 for October.US jobless claims is also due, following last week's initial jobless claims reading rinsing to 276,000 from 260,000 the previous week, with a four-week average of 262,750, close to its lowest level in several decades.UBS expects 266,000 for this week's claims reading.Thursday 12 NovemberINTERNATIONAL ECONOMIC ANNOUNCEMENTSContinuing Claims (US) (13:30)Crude Oil Inventories (US) (15:30)Industrial Production (EU) (10:00)Initial Jobless Claims (US) (13:30)MBA Mortgage Applications (US) (12:00)Treasury Budget Statement (US) (19:00)INTERIMS3i Group, Atkins (WS), Burberry Group, FirstGroup, Halfords Group, Infinis Energy, Norcros, Rexam, SABMiller, VolexIMSS/TRADING UPDATEBeazley, Card Factory, Derwent London, Howden Joinery Group, IMI, Morgan Advanced Materials, Premier Oil, Rolls-Royce Holdings Plc, Restaurant Group, Tungsten Corporation, TBC BankGMSFinsbury Growth & Income TrustFINALSAB Dynamics, Punch TavernsANNUAL REPORTAB DynamicsSPECIAL DIVIDEND PAYMENT DATEJPMorgan Mid Cap Inv Trust, S&USPECIAL EX-DIVIDEND PAYMENT DATETex HoldingsEGMSX5 Retail Group NV GDR (Reg S)AGMSAsian Citrus Holding, Crown Place VCT, Digital Globe Services Ltd (DI), Hansard Global, Kier Group, Picton Property Income Ltd, Qatar Investment Fund, Swallowfield, Target Healthcare Reit Ltd, Thorpe (F.W.)UK ECONOMIC ANNOUNCEMENTSRICS Housing Market Survey (09:30)FINAL DIVIDEND PAYMENT DATEIdeagen, JPMorgan Mid Cap Inv Trust, Photo-Me InternationalFINAL EX-DIVIDEND DATEAbcam, Finsbury Food Group, JPMorgan Overseas Inv Trust, JPMorgan Smaller Companies Inv Trust, Jupiter European Opportunities Trust, Just Retirement Group, Matchtech Group, SwallowfieldINTERIM DIVIDEND PAYMENT DATEBritish American Inv Trust, Ladbrokes, Tullett Prebon, Zhejiang Expressway Co 'H' SharesINTERIM EX-DIVIDEND DATECareTech Holding, Hargreave Hale AIM VCT 2, Home Retail Group, Marks & Spencer Group, Next Fifteen Communications, Octopus Apollo VCT, Panther SecuritiesQUARTERLY PAYMENT DATEMerchants TrustQUARTERLY EX-DIVIDEND DATEBrunner Inv Trust, F&C Commercial Property Trust Ltd., GlaxoSmithKline, Picton Property Income Ltd, Royal Dutch Shell 'A', Royal Dutch Shell 'B'