The Week Ahead: Unseasonal weather takes toll on high street stores

While the recent Indian summer is beginning to seem like a distant memory, the retailers are just starting to count the cost. The surprisingly high temperatures caught the high street unaware, with shoppers not too keen on stocking up their winter wardrobe with scarves and woolly jumpers. Therefore, investors will be holding their breath when Next unveils its third-quarter update on Wednesday, coming as it does ahead of figures from a number of its peers in the world of clothing retail.

Liberum Capital's Simon Irwin believes that the "timing could not possibly [have been] worse" for the unseasonal weather given "weakening consumer confidence, peaking input prices and high levels of inventory". He warns that sales across the sector may have been hit by as much as 10 per cent, adding that there "are clear signs ... promotional activity is starting to increase".

From Next specifically, Mr Irwin expects "another weak performance" from its stores. He is predicting a 4 per cent drop in like-for-like sales and forecasts that growth at its Directory division – which sells both online and by mail order – will have slowed. Although the analyst admits that the risk taken by the company in buying its stock earlier paid off over the first half of the year, he warns that there is "little guarantee of future success".

Deutsche Bank's Charlie Muir-Sands also believes Next's sales figures will have been hit by the weather, and is even more bearish on its like-for-like sales figures, expecting a drop of 6.5 per cent from its retail operations.

However, he believes that, with both sides of the business, a "proportion of these ... sales has been deferred into the fourth-quarter rather than lost", adding that the Directory unit will continued to have grown overseas.

Today

Although he warns that the bank's figures for the third-quarter "will not be pretty", Evolution Securities' Ian Gordon still expects Barclays to "remain solidly profitable" when it updates the market today, with Barcap outperforming its rivals. Nonetheless, he predicts that the investment banking division will reveal a 16 per cent drop in revenues from the previous three months, with most of the damage done by its fixed-income, currency and commodities operations.

Results/Updates: Barclays, Capital Shopping Centres, Centamin Egypt and Mondi.

Tomorrow

Results/Updates: Aegis, Imperial Tob- acco, Legal & General, National Express and Rathbones.

Wednesday

The recent market slump was a particular blow for BT, with the telecoms giant's huge pension fund deficit increasing as equities fell. With the rally coming after the end of the company's second quarter, Citigroup's Simon Weeden believes its figures for the period, posted on Wednesday, will show a £1bn worsening in its deficit. The analyst also says BT could unveil an increase in its interim dividend of more than 8 per cent to 2.6p, although he adds that he "will not be overly concerned if BT holds back at this stage given the recently volatile markets".

This volatility will be in focus for Standard Life as well, with the insurer unveiling numbers for the third-quarter including assets under management and new business sales. JP Morgan Cazenove is expecting its individual pension operations to see a mere 5 per cent growth because of a drop in inflows, while the broker predicts the group's assets under administration will have fallen 6.5 per cent from the previous quarter to £187bn.

Results/Updates: Antofagasta, Henderson, Inmarsat, Logica, Next, Randgold Resources, Standard Life and St James's Place.

Thursday

After the pubs group JD Wetherspoon saw a 0.4 per cent jump in its like-for-like sales over August, analysts at Espirito Santo say that since trading over that month will have been hit by the riots around the country, both September and October should have enjoyed a slight improvement.

For the first quarter overall – which the company announces its update for on Thursday – analysts from the broker believe its sales will have risen by around 1.4 per cent year on year, a small slowdown from the previous three months.

Results/Updates: Aviva, BT, Cable & Wireless Communications, Invensys, JD Wetherspoon, Man Group, Old Mutual, RSA Insurance, Shanks, Spirent, Tate & Lyle and Unilever.

Friday

Results/Updates: EasyJet, Lancashire Holdings, Meggitt, Millennium & Copthorne Hotels, Royal Bank of Scotland, Smith & Nephew and Spirax & Sarco.

Economic Diary

TODAY Bank of England lending figures; BSA savings and mortgage lending figures; eurozone CPI inflation estimate; eurozone unemployment rate; Hometrack house prices

TOMORROW Cips manufacturing PMI; eurozone manufacturing PMI; Preliminary third-quarter GDP figures; Service sector data; US construction spending; ISM manufacturing

WEDNESDAY Cips construction PMI; US ADP employment change; US interest rate decision

THURSDAY Cips services PMI; ECB rate decision; eurozone services PMI; US factory orders

FRIDAY Eurozone PPI; PPI data; US non-farm payrolls; US jobs data

Voices
A Russian hunter at the Medved bear-hunting lodge in Siberia
Save the tigerWildlife charities turn to those who kill animals to help save them
News
Davis says: 'My career has been about filling a niche - there were fewer short actors and fewer roles – but now I'm being offered all kinds of things'
PeopleWarwick Davis on Ricky Gervais, Harry Potter and his perfect role
News
i100
Sport
Frank Lampard will pass Billy Wright and equal Bobby Charton’s caps tally of 106 caps against
sportFormer Chelsea midfielder in Etihad stopgap before New York contract
PROMOTED VIDEO
Arts and Entertainment
The first film introduced Daniel Radcliffe to our screens, pictured here as he prepares to board the train to Hogwarts for the first time.
booksHow reading Harry Potter helps children grow up to be gay-friendly
Arts and Entertainment
A scene from Aladdin is performed at the Tony Awards in New York in June
theatreBrit producer Lythgoe makes kids' musical comedy a Los Angeles hit
Sport
Usain Bolt of Jamaica smiles and shakes hands with a competitor after Jamaica won their first heat in the men's 4x100m relay
sport
News
Chancellor George Osborne, along with the Prime Minister, have been 'complacently claiming the economy is now fixed', according to shadow Chancellor Ed Balls
i100... which is awkward, because he is their boss, after all
Life and Style
A small bag of the drug Ecstasy
Health
Life and Style
Floral-print swim shorts, £26, by Topman, topman.com; sunglasses, £215, by Paul Smith, mpaulsmith.co.uk
FashionBag yourself the perfect pair
News
news
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Netherlands' goalkeeper Tim Krul fails to make a save from Costa Rica's midfielder Celso Borges during a penalty shoot-out in the quarter-final between Netherlands and Costa Rica during the 2014 FIFA World Cup
newsGoalkeepers suffer from 'gambler’s fallacy' during shoot-outs
News
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmReview: A week late, Secret Cinema arrives as interactive screening goes Back to the Future
Extras
indybest
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Financial Analyst - Forecasting - Yorkshire

£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...

Business Architect - Bristol - £500 per day

£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...

Regulatory Reporting-MI-Bank-Cardiff-£300/day

£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Day In a Page

Save the Tiger: Meet the hunters tasked with protecting Russia's rare Amur tiger

Hunters protect Russia's rare Amur tiger

In an unusual move, wildlife charities have enlisted those who kill animals to help save them. Oliver Poole travels to Siberia to investigate
Transfers: How has your club fared in summer sales?

How has your club fared in summer sales?

Who have bagged the bargain buys and who have landed the giant turkeys
Warwick Davis: The British actor on Ricky Gervais, how the Harry Potter set became his office, and why he'd like to play a spy

'I'm a realist; I know how hard this business is'

Warwick Davis on Ricky Gervais, Harry Potter and his perfect role
The best swim shorts for men: Bag yourself the perfect pair and make a splash this summer

The best swim shorts for men

Bag yourself the perfect pair and make a splash this summer
Has Ukip’s Glastonbury branch really been possessed by the devil?

Has Ukip’s Glastonbury branch really been possessed by the devil?

Meet the couple blamed for bringing Lucifer into local politics
Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk on Gaza conflict

Dress the situation up all you like, but the truth hurts
Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

In grandfather's footsteps

5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

Martha Stewart has flying robot

The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

Do women cyclists need 'pootling lanes'?

Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

The dining car makes a comeback

Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

Gallery rage

How are institutions tackling the discomfort of overcrowding this summer?
Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

Eye on the prize

Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

Women's rugby

Tamara Taylor adds fuel to the ire in quest to land World Cup