The mid-point of this shortened week is fairly sparse in terms of corporate news, with final results from clothing giant JD Sports Fashion PLC (LON:JD.) serving as the biggest draw for investors on Wednesday alongside US retail sales and production data on the macro front.
The retailer is unlikely to cause any upsets from its figures, having said in January that it expects headline pre-tax profit to be “in the upper quartile of current market expectations” at between £403mln-£433mln.
With the group’s latest full year having ended on 1 February, before the coronavirus pandemic began to hammer the retail sector, the group’s outlook statement is likely to be the centre of attention after the company withdrew guidance and closed all of its stores in the UK, the US and Europe in late March.
Current trading, particularly for the company’s still operating online division, is likely to be closely eyed for how much sales will be able to offset the impact from retail closures.
The company said previously that online sales will represent a “small mitigation” of the losses at the shuttered outlets, so investors will be eyeing whether the company has implemented any other measures to protect its bottom line and balance sheet such as spending cuts and furloughing staff.
In a note on 8 April, analysts at Berenberg are predicting the firm will suffer severe disruption for five months, resulting in a two-thirds decline in store sales and a 20% fall in online, so any of the firm’s own forecasts will be watched closely.
Significant announcements expected for Wednesday 15 April:
Trading announcements: Hunting PLC (LON:HTG)
Interims: Carr’s Group PLC (LON:CARR)
Finals: JD Sports Fashion PLC (LON:JD.)
Economic data: US retail sales, US production