The Week Ahead: Great expectations for retail sector's top end

Retail sector investors will be keen to hear how the top end of the market is faring when Burberry posts a first quarter update this Wednesday.

Deutsche Bank expects evidence of "robust sales trends" owing to the continued inventory clearance, but warns that the potential for forecast upgrades is slim. "This clearance will act as a drag on gross margins in the first half and, combined with adverse foreign exchange moves in recent months, limits the near-term potential for forecast upgrades," the broker said. "In the short term the shares may therefore give up some of their recent gains."

Credit Suisse also weighed in ahead of the update. Given the recent share price performance, expectations appear to be running high, the broker said, adding that the "market may already be anticipating better top line performance" than it forecasts.

Today: Results/Updates: Low & Bonar, Experian and Spice.

Tomorrow: Forecast upgrades may be forthcoming when Dunelm, the specialist homewares retailer, posts a full-year trading update tomorrow, according to Numis Securities, which anticipates news of a flat like-for-like sales performance in the second half. "Although we note that Dunelm will have been negatively affected by the good weather, unless [trading] has really 'fallen out of bed', we wouldn't be surprised to see some upgrades from the current level," the broker said. Results/Updates: Alphameric, Ferrexpo and Dunelm.

Wednesday: Given recent asset sales and the departure of the London division's managing director, Mike Hussey, investors will be hoping for further clarity on Land Securities' strategy when the commercial property group posts an update mid-week, according to UBS.

"The company has sold over £500m of assets since the rights issue and this may be negative for earnings in the short-run," the broker said, "[It] could provide some insight into the rationale for the sales, the price achieved relative to book value and if they plan to make any acquisitions."

Results/Updates: Blacks Leisure, London Stock Exchange, Hochschild Mining, Rio Tinto, Enterprise Inns and Land Securities.

thursday: UBS is looking forward to an upbeat statement from BlueBay Asset Management, the fund manager, which is due to post a trading update later this week. Assets under management (AuM) should have benefited from both market appreciation and net fund inflows, the broker said, estimating total AuM of $21bn (£13bn), up 17 per cent from $18m at the end of March, thanks largely to the group's long-only funds.

"BlueBay has benefited from strong inflows into its long-only funds, particularly the BlueBay Investment Grade Bond Fund, which was the highest-selling fund across the whole of UK/ Europe in [the] four months to April," UBS said, adding that the group's AuM should be strong both in absolute terms, and relative to Ashmore, which is due to publish a fourth quarter trading statement on the same day.

For Ashmore, UBS forecasts total AuM of $23.5bn, which would be unchanged from the end of March. "We would expect positive market appreciation to be offset by fund outflows," the broker said, expressing caution ahead of the update as it sees a risk that "net fund flows could disappoint the market both in terms of absolute flows and relative to BlueBay's flows". "There is also a risk of consensus earnings per share downgrades," UBS added.

The dividend will be in focus when Sports Direct posts preliminary results, owing to recent reports the payout may be scrapped. Following revelations about the loan from founder Mike Ashley to Sir David Jones, the chairman of rival JJB Sports, Investec, which weighed in on the company last week, said shareholders should use the opportunity to ask questions about various aspects of the business, including its key lending partners, current facilities, refinancing schedule and key banking covenants.

Also on Thursday, Numis expects to hear of in-line trading when Hilton Food, the food producer, posts an update. "We forecast continued double digit volume growth in central and eastern Europe," the broker said. Results/Updates: Spectris, Mothercare, Hamworthy, Hilton Food, Sports Direct International, Ashmore, BlueBay Asset Management, and Mitchells & Butlers.

Friday: Results/Updates: Invensys and Cable & Wireless.

Start your day with The Independent, sign up for daily news emails
ebooksA special investigation by Andy McSmith
Arts and Entertainment
Larry David and Rosie Perez in ‘Fish in the Dark’
theatreReview: Had Fish in the Dark been penned by a civilian it would have barely got a reading, let alone £10m advance sales
Details of the self-cleaning coating were published last night in the journal Science
Approved Food sell products past their sell-by dates at discounted prices
Life-changing: Simone de Beauvoir in 1947, two years before she wrote 'The Second Sex', credited as the starting point of second wave feminism
peopleHer seminal feminist polemic, The Second Sex, has been published in short-form to mark International Women's Day
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Evening Administrator

£8 per hour: Recruitment Genius: This Pension Specialist was established early...

Guru Careers: Executive Assistant / PA

£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...

Ashdown Group: Graduate Application Support Analyst

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Reach Volunteering: External Finance Trustee Needed!

Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...

Day In a Page

Homeless Veterans campaign: Donations hit record-breaking £1m target after £300,000 gift from Lloyds Bank

Homeless Veterans campaign

Donations hit record-breaking £1m target after huge gift from Lloyds Bank
Flight MH370 a year on: Lost without a trace – but the search goes on

Lost without a trace

But, a year on, the search continues for Flight MH370
Germany's spymasters left red-faced after thieves break into brand new secret service HQ and steal taps

Germany's spy HQ springs a leak

Thieves break into new €1.5bn complex... to steal taps
International Women's Day 2015: Celebrating the whirlwind wit of Simone de Beauvoir

Whirlwind wit of Simone de Beauvoir

Simone de Beauvoir's seminal feminist polemic, 'The Second Sex', has been published in short-form for International Women's Day
Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Why would I want to employ someone I’d be happy to have as my boss, asks Simon Kelner
Confessions of a planespotter: With three Britons under arrest in the UAE, the perils have never been more apparent

Confessions of a planespotter

With three Britons under arrest in the UAE, the perils have never been more apparent. Sam Masters explains the appeal
Russia's gulag museum 'makes no mention' of Stalin's atrocities

Russia's gulag museum

Ministry of Culture-run site 'makes no mention' of Stalin's atrocities
The big fresh food con: Alarming truth behind the chocolate muffin that won't decay

The big fresh food con

Joanna Blythman reveals the alarming truth behind the chocolate muffin that won't decay
Virginia Ironside was my landlady: What is it like to live with an agony aunt on call 24/7?

Virginia Ironside was my landlady

Tim Willis reveals what it's like to live with an agony aunt on call 24/7
Paris Fashion Week 2015: The wit and wisdom of Manish Arora's exercise in high camp

Paris Fashion Week 2015

The wit and wisdom of Manish Arora's exercise in high camp
8 best workout DVDs

8 best workout DVDs

If your 'New Year new you' regime hasn’t lasted beyond February, why not try working out from home?
Paul Scholes column: I don't believe Jonny Evans was spitting at Papiss Cissé. It was a reflex. But what the Newcastle striker did next was horrible

Paul Scholes column

I don't believe Evans was spitting at Cissé. It was a reflex. But what the Newcastle striker did next was horrible
Miguel Layun interview: From the Azteca to Vicarage Road with a million followers

From the Azteca to Vicarage Road with a million followers

Miguel Layun is a star in Mexico where he was criticised for leaving to join Watford. But he says he sees the bigger picture
Frank Warren column: Amir Khan ready to meet winner of Floyd Mayweather v Manny Pacquiao

Khan ready to meet winner of Mayweather v Pacquiao

The Bolton fighter is unlikely to take on Kell Brook with two superstar opponents on the horizon, says Frank Warren
War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable