Primark owner Associated British Foods PLC (LSE:ABF) will release a pre-close trading update Monday, following its last update that showed festive sales up 20%.
With it seeming highly unlikely this level of momentum will have continued into the New Year, the chain is still expected to reveal some resilient numbers in this latest trading statement, said analysts at Hargreaves Lansdown.
Elsewhere, brokers remained rather coy.
Jefferies previously reiterated its 'hold' rating for AB Foods, adding that inflation continued to pressure its grocery and sugar businesses which could offset margin gains.
AB Foods’ shining light continues to be Primark, for which Citigroup raised its sales forecasts, citing the “store-led strength” of its clothing branches.
UBS echoed a similar belief, adding that previous “commentary on costs and Primark margins in the period is a positive.”
Barclays is also upbeat on Primark’s performance, saying it is one of the high street retailers “bouncing back" as online spending slows.
Investors, ahead of the pre-close trading update, will also be looking ahead for any updates on inflation, with the current consumer prices index at 10.1% in January, falling for the third consecutive month.
Shares in ABF are up 20% in the year-to-date, changing hands at 1,953p.