B&M European Value Retail's (LSE:BME) update on Tuesday, 9 January should shine a light on whether sales have slowed or accelerated since poor weather muted growth midway through the year.
Barclays analysts anticipate third-quarter like-for-like sales growth from the FTSE 100 discount retail chain will have slowed compared to earlier in the year, the figure could represent an acceleration in recent weeks.
B&M had reported sales growth of 9.2% and 3.1% in the first and second quarters respectively, with “unseasonal weather” having impacted the latter.
Third-quarter sales growth will likely sit at 3%, according to Barlcays, reflecting a spillover of such effects into the opening stages of the period, followed by a 4% to 4.5% growth since.
B&M already acknowledged these slower sales early on in the period as it reported half-year results in November.
“The group is trading against tough comparatives, making this a pleasing result against an uncertain and ever-changing economic background,” B&M said at the time.
Adding the “volatile background” made forecasting difficult, B&M suggested adjusted pre-tax earnings should sit between £620 million to £630 million for the year.
Barclays noted the third quarter results could see the declaration of a special 20p per share dividend, meanwhile, representing a £200 million payout by B&M.