Primark owner Associated British Foods PLC (LSE:ABF) previously set the stage for a drop in fourth-quarter sales across the UK on the back of poor weather conditions.
Updating in September, the group noted like-for-like sales in the UK were predicted to fall by 2% over the second half of the year as “unfavourable weather” hit footfall.
Investors will therefore be looking to next Tuesday, 5 November’s results for clarity around the dampened sales, after ABF also highlighted a drop in market share at the time.
Shore Capital Markets analysts noted the upcoming update from ABF, which will come ahead of reports from peers Marks and Spencer Group PLC and J Sainsbury PLC (LSE:SBRY), will offer “a whole lot more new information on the UK retail scene”.
“No doubt questions will be asked about how they [...] see the impact of the UK Budget on cost inflation [and] recovery,” analysts said. “The wider retail inflationary outlook will be to the fore.”
This was as sales across Europe, excluding the UK, were expected to be better over the second half, equating to a 0.9% increase.
ABF’s other grocery, ingredients, sugar and agricultural businesses were said to be enjoying mixed fortunes the last time ABF updated.
Lower sugar prices across Europe had hit the segment, prompting the company to lower adjusted operating profit guidance to £200 million for the wing.
Wet weather had also hit its agricultural wing, ABF noted, alongside soft demand in the likes of China and the UK.
Shares are down 5% over the year so far, having faced a blow following ABF’s last update.