Thursday preview: Home Retail, US retail sales

10th Jun 2009 17:06

The market is expecting good news from Homebase and Argos owner Home Retail Group on Thursday when it gives a trading update, after fellow DIY retailer Kingfisher produced surprisingly strong first quarter figures last week.Reading across from Kingfisher's results, which included doubled profit at B&Q, the market is expecting an improvement in like-for-like sales at Homebase against, admittedly, weak comparative figures. Broker KBC Peel Hunt notes that 'seasonal product in the first quarter has historically been described as representing 40 per cent-plus of the sales mix,' so a good first quarter is important. UBS is also looking for an upsurge in barbecue and garden furniture purchases, and estimates that a '20-30 per cent recovery in seasonal would give a 6-10 per cent pro-forma like-for-like gain.'Trading may be less buoyant at Argos, where a spell of hot weather such as the UK has recently enjoyed is less beneficial to sales. Analysts are expecting a 4% fall in Argos's like for like (LFL) sales in the 13 weeks to the end of May, though this would represent an improvement in the trend after LFL sales declines of around 6% over the preceding three quarters.US retail sales for May are expected to have risen 0.3% in May after dipping 0.4% in April, helped by an upturn in demand for cars, despite the well publicised financial troubles suffered by General Motors and Chrysler. With car sales excluded, retail sales are tipped to rise 0.2%, after falling 0.5% in April.QUARTERLY PAYMENT DATEProdesse Investment Ltd.INTERNATIONAL ECONOMIC ANNOUNCEMENTSRetail Sales (US) (13:30)Jobless Claims (US) (13:30)Business Inventories (US) (15:00)ECB Report (EU) (09:00)GDP (JPN)UK ECONOMIC ANNOUNCEMENTSNIESR GDP estimate (00:01)FINALSAEA Technology, London & Stamford Property, Park GroupAGMSAfren, Blue Oar, Kentz Corporation, Melrose Resources, Pacific Assets Trust, PrezzoFINAL DIVIDEND PAYMENT DATEAntofagasta, Computacenter, Macfarlane GroupTRADING STATEMENTHome Retail Group