Tesco, Sainsbury's, Next and most of the other big-boy retailers have reported their Christmas results, leaving space for some of the smaller companies to play their hand next week.
Food retailers performed positively over the Christmas break, even if the market’s over-optimism hindered any upward share price momentum.
However, for non-food retailers, it hasn’t been as smooth sailing, with the overall sentiment hinting that Brits were forced to prioritise their Christmas dinner over gifts.
Footfall numbers dwindled, early data on sales growth showed it was behind the rate of inflation and there have been few indications from those that have reported to show consumer spending is improving.
So, which smaller retailers are reporting next week and how will they contend?
Currys – Thursday 18 January (Third Quarter)
At the start of December, investors in the electronic goods company were told that first-half sales had dipped across all its regions.
Rivals have pointed out that during the festive break, sales of high-value items like TVs, computers and gadgets were down.
However, the retailer isn’t going down without a fight and is said to be focusing on more profitable sales over market share.
Partnered with cost-saving measures like the sale of its Greek business, the group is expected to have some wiggle room over the short-term.
“Investors are expecting an update on management’s plans for the extra cash by the end of the financial year, with some form of dividend as a possible way to return cash to shareholders,” Aarin Chiekrie, equity analyst at Hargreaves Lansdown said.
Dunelm – Thursday 18 January (Second Quarter)
Higher costs and reduced consumer spending led the home furnishing retailer to experience a dip in annual profit of almost 8% when it reported full year numbers in 2023.
However, the headwinds began to ease by Autumn, and with shares up almost 4% in the last six months, investors will be hoping it can keep momentum going.
“However, it’s clear that the retail environment remains unpredictable. Even as inflation slows, and better mortgage deals land, the housing market is super-slow which may still act as a drag on sales,” Chiekrie warned.
Keen-eyed investors will also be on the lookout for indications of stock delays, with other rivals having warned of cost increases should the disruption in the Red Sea continue.
Card Factory (LSE:CARD) – Tuesday 16 January (Christmas update)
A scheduled quarterly update has been confirmed for 16 January, with analysts predicting that the greeting cards retailer will provide a solid festive update.
Over the last year, the group has performed positively, with shares up close to 10%.
Liberum analysts are now confident this good form can continue after reading across from the record results of discount grocers Lidl and Aldi.
The UK broker reckons companies in the discount/value space will have benefitted from consumers 'down spending' and therefore rates the stock a ‘buy’.
However, the real question will be whether shoppers have cut out Christmas cards to save room for other festive essentials.
DFS – Friday 19 January (First half)
The furniture retailer has lost a quarter of its market value in the last year, but investors can feel slightly better about its prospects after analysts ranked it as a top pick for 2024.
In a research note, Stifel said: “DFS has seen sales and profits suffer over the past two years, with the cost-of-living crisis impacting sales and soaring freight rates and cost inflation impacting margins. However, despite these market headwinds, we remain positive on the stock.”
Retail analyst David Hughes noted that the shares are close to an all-time low but likes that the company has a proven record of growing market share – particularly during downturns – and is “well positioned to capitalise as and when the market recovers”.
TheWorks – Thursday 18 January (Interims)
Small cap minnow and discount stationery retailer TheWorks will be hoping to put a close to 40% share price fall in the rear-view mirror.
Should the group be able to offer any positive growth prospects it could be huge for overall sentiment, especially as 2023 saw the collapse of fellow stationery company Paperchase.
A quick look on the group’s website and users will be blasted with ‘everything must go’ sales, offering a small hint that the group may have overstocked over the Christmas break.
Unlike the others on this list, TheWorks' best period will likely come from its back-to-school sales; pencil cases and rubbers aren’t usually the top of too many Christmas lists.
N Brown – Thursday 18 January (Third Quarter)
The owner of brands Jacamo, JD Williams and Simply Be has experienced a consistent decline in its share price since 2022, losing a third of its market value along the way.
N Brown focuses on online fashion and is liked by Mike Ashley’s Frasers Group, which holds close to a 20% stake in the company.
Supply chain issues have been rife across the industry due to all manner of reasons from the Ukraine war to Red Sea disruptions.
On Tuesday, it announced it had hired the former Ted Baker operations executive Clare Empson as director of supply chains, so it will be interesting to see what the group says about this topic when it reports.
Shares have rallied slightly since the turn of the year, with the stock 12% higher at around 18p.