Thursday preview: DSG, Halfords, Home Retail ...

13th Jan 2010 16:36

Another slew of retailers are set to update the market on Thursday on how trading went over Christmas, among them DSG International, Halfords, Home Retail and Mothercare.Consumer electronics retailer DSG, which owns the Currys, PC World and Dixons brands, issues a trading update covering the final 12 weeks of 2009. The market was encouraged by the company statement at the end of November when DSG said that like for like (LFL) sales in the preceding 8 weeks had been up 1% year on year, with improving trends in UK & Ireland Electricals, Italy and on-line. Stockbroker Investec thinks that a strong performance in the Nordic countries will help DSG post a 3% year on year improvement in LFL sales in the last 12 weeks of 2009. Home Retail Group, which owns the Homebase DIY stores, goes head to head with DSG in many areas via its Argos brand, and it is the performance of Argos over Christmas that is likely to be of more importance in Thursday's trading statement. Investec thinks Argos will post a 1.1% year on year improvement in LFL sales, while Homebase is tipped to see LFL sales rise 0.6%. The company may have had to resort to heavy discount to drive sales, however. Children's retailer Mothercare has been going great guns overseas while in the home market online sales have been buoyant. Expectations are for a LFL sales boost year on year of around 3%.Car parts and bikes retailer Halfords reported a 1.7% increase in LFL sales at the interim stage, which ran to 2 October. That sort of improvement is unlikely to be maintained, and the market expects Thursday's announcement will see the retailer announcing flat or modestly improved sales.Coincidentally, Associated British Foods, Premier Foods and possibly Northern Foods are due to issue trading statements. To add to possible confusion with Premier Foods, the oil company Premier Oil is also set to make an announcement.Primark and British Sugar owner Associated British Foods is tipped to show a 5% increase in LFL sales over the fourth quarter of 2009, a performance that could embarrass fellow clothing retailer Marks & Spencer (M&S), which last week reported a 0.8% increase in LFL sales in the 13 weeks to 26 December.Northern Foods is keeping mum on its web site about its 2010 financial calendar but JPMorgan Chase thinks the M&S food supplier will report flat like for like sales for the final quarter of 2009, though it notes that the market consensus is for a 2% hike.'Despite retailers' comments about better frozen pizza sales during the holiday season (more eat-at-home due to the economy and the weather), we believe the combination of disinflation, a promotional frozen category, and a still lacklustre chilled category (ready to eat meals and sandwiches) will lead to flat growth for 3Q10 [third quarter of fiscal 2010] at the consolidated level,' the US bank opined.INTERIMSFirstgroup, MisysINTERIM DIVIDEND PAYMENT DATEMckay Secs., Synergy HealthcareQUARTERLY PAYMENT DATEYamana Gold IncQ4Sandvine CorporationGMSNational Bank of Greece ADRFINALSAukett Fitzroy Robinson Group, Invista European Real Estate Trust, Sandvine Corporation, TravelzestAGMSCardiff Property, F&C Capital & Income Inv Trust, Frutarom GDR (Reg S), Glasgow Income Trust, Interactive Prospect Targeting HoldingsTRADING ANNOUNCEMENTSAssociated British Foods, Barratt Developments, Booker Group, DSG International, Halfords Group, Home Retail Group, Mothercare, Northern Foods, Premier Foods, Premier Oil, Rio TintoINTERNATIONAL ECONOMIC ANNOUNCEMENTSImport Price Index (US) (13:30)Advance Retail Sales (US) (13:30)Weekly Jobless Claims (US) (13:30)Business Inventories (US) (15:00)Consumer Prices Index (GER) (07:00)European Central Bank Rate Decision (EC) (12:45)