Wednesday preview: Sainsbury expected to outperform Tesco in first quarter

11th Jun 2013 15:37

All eyes will be on Sainsbury on Wednesday as the supermarket giant updates the market on first-quarter trading.While rival chain Tesco unveiled a 1.0% fall in UK like-for-like (LFL) sales in its first-quarter statement last week, smaller retailer Sainsbury is expected to report its 34th straight quarter of LFL sales growth.In a research report last week, analysts at Investec said that Sainsbury's strong momentum delivered in the fourth quarter - with LFL sales up 3.6% - has continued with LFLs forecast to rise around 2.0%.Nevertheless, the broker admitted that figures are likely to be held back slightly due to comparisons with the extra bank holiday last year for the Diamond Jubilee as well as a lower contribution from extensions. While Investec has a cautious view on the wider sector, given that it is in the middle of a "major structural transition", analyst Dave McCarthy said that Sainsbury was his favourite pick in the category."Our forecasts are probably higher than consensus, but Sainsbury has momentum and appears to be taking share from Tesco at an increasing rate," he said.Sainsbury is continuing to invest in space while Tesco has called an end to extension plans for now. The company reported its full-year results last month, revealing a 4.6% increase in total sales (including VAT) to £25.63bn in the 12 months to March 16th, while underlying profit before tax rose 6.2% to £756m.Wednesday June 12INTERIM EX-DIVIDEND DATE Brewin Dolphin Holdings, Octopus Eclipse VCT 1, Scottish Inv Trust, Shaftesbury, Sherborne Investors (Guernsey) 'A' Shares, Smiths News, Victrex QUARTERLY EX-DIVIDEND DATE British Assets Trust, XP Power Ltd. (DI) INTERNATIONAL ECONOMIC ANNOUNCEMENTS Consumer Price Index (GER) (07:00) Industrial Production (EU) (10:00) Treasury Budget Statement (US) (19:00) GMS Highway Capital, Sopheon FINALS Creston, Hyder Consulting, Picton Property Income Ltd SPECIAL EX-DIVIDEND PAYMENT DATE Moneysupermarket.com Group EGMS Noventa Ltd AGMS Antofagasta, Bank Pekao SA GDS (Reg S), Coca-Cola HBC S.A., Dexion Trading Ltd., Eastern Platinum Ltd (DI), Flying Brands Ltd Units, International Public Partnerships Ltd., LiDCO Group, Lifeline Scientific Inc. (Reg S), Octopus VCT 2, Oxford Catalysts Group, Polymetal International, Reabold Resources, Sopheon, Source BioScience, Trinity Exploration & Production, Wandisco TRADING ANNOUNCEMENTS ASOS, Sainsbury (J) UK ECONOMIC ANNOUNCEMENTS Claimant Count Rate (09:30) Unemployment Rate (09:30) FINAL DIVIDEND PAYMENT DATE Centrica FINAL EX-DIVIDEND DATE Acal, Alliance Pharma, Amiad Water Systems Ltd, Ashley (Laura) Holding, Augean, Big Yellow Group, Blackstar Group SE (DI), Booker Group, Camellia, Edinburgh Inv Trust, Hunting, Intermediate Capital Group, Johnson Matthey, LondonMetric Property, Mears Group, Northern Investors Co, Phoenix IT Group, Prezzo, Prime People, Restore, Scisys, Speedy Hire, Templeton Emerging Markets Inv Trust, Tribal Group, Vodafone Group