Tuesday preview: Morrisons and Debenhams report Christmas trading

WM Morrison Supermarkets is expected on Tuesday to report a drop in sales over the Christmas period amid tough competition and heavy discounting in the sector.

UBS said it predicts a 2.5% fall in like-for-like (LFL) sales in the nine weeks to 3 January, compared to a 2.6% decline in the third quarter.

“Though the base is materially more difficult (Christmas goes against a -3.1% comparative compared to a -6.3% comparative) the comparative in the proceeding year (Christmas 2013) was much easier."

Kantar will publish its market share data on supermarkets. Morrisons is predicted to have lost 20 basis points of market share over Christmas, reflecting store closures and the sale of its convenience business, according to analysts at Bernstein.

Meanwhile, Debenhams is due to report a trading statement for the Christmas period.

“Although Debenhams will be reporting a 19 week trading period, longer than most retailers and sufficient to include the strong weather-boosted September, we expect the unseasonably warm Christmas runin will result in the group reporting a small negative LFL outturn of -1%,” Numis analyst Andrew Wade said.

Although this will put pressure on FY estimates, we think significant downgrades are unlikely.

In October, the group reported full-year pre-tax profit of £113.5m, beatings consensus of £112.1m, but the company saw a slowdown in the second half which implied a soft end to the year.

Tuesday 12 January

INTERIMS
Games Workshop Group, Ilika

Q3
Big Yellow Group

GMS
Capital Management & Investment, Harvest Minerals Limited (DI)

SPECIAL DIVIDEND PAYMENT DATE
Netcall, OMG

EGMS
Grupo Clarin SA GDR (Reg S), MTI Wireless Edge Ltd., Serabi Gold

TRADING ANNOUNCEMENTS
Debenhams, Grafton Group Units, Greggs, Michael Page International, Morrison (Wm) Supermarkets, The Gym Group

UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
Industrial Production (09:30)
Manufacturing Production (09:30)

FINAL DIVIDEND PAYMENT DATE
Netcall