ASOS plc (LON:ASC) has enjoyed continued growth despite a tough UK retail market as it benefits from the shift towards online spending and rising international sales.
The online fashion retailer reports its full year results on Tuesday and it has already told investors it expects an increase in sales at the top end of its estimates of between 30-35%.
Profit before tax is anticipated to be in line with market consensus forecasts of £79.4mln, compared to £32.7mln the previous year, according to a trading update in July.
With the guidance for 2017 laid out, investors are likely to pay more attention to any updates on the group’s expansion plans and its guidance for 2018.
ASOS is spending US$40mln on a second distribution centre in the US as part of its international expansion plan.
“The company's main focus is likely to be on providing an update on key operational initiatives: the ramp up of the Eurohub 2 warehouse in Germany, further details on plans for the US warehouse, delivery and returns service improvements, the launch of beauty and private label activewear to name a few,” Deutsche Bank said.
“However, the main focus for analysts and investors is likely to be on FY18 guidance.”
Deutsche Bank expects a 27% increase in sales and pre-tax profit of £101mln for 2018.
Bellway shrugs off Brexit uncertainty
Housebuilder Bellway PLC (LON:BWY) has said worries over Brexit have so far failed to impact buyer sentiment but economists have warned the housing market faces a further slowdown.
The company, which publishes its annual results on Tuesday, has guided to a 14% increase in housing revenue to £2.5bn, compared to £2.2bn in 2016.
It reported further volume growth with a 10.6% increase in the number of housing completions to 9,644, up from 8,721 a year earlier, and said its operating margin is expected to rise to slightly in excess of the 2016 level of 22.0%.
Bellway added that it achieved 16% growth in the value of the forward order book to £1.2bn, versus £1.1bn in 2016.
However, the housing market is expected to see a further slowdown on the prospect of rising interest rates, an increasing squeeze on real wages and the risk of a hard Brexit.
Analysts at UBS said they will be looking for an update on post-period trading in Bellway’s annual results and any further guidance on the outlook for 2018. UBS expects full year pre-tax profit of £544mln, net income of £437mln, earnings per share of 357p and dividend of 123p, with net cash of £16mln.
Weaker London tourism growth to weigh on Merlin’s Q3 numbers
Had this preview been written last week, a large chunk of it would likely have focused on Merlin Entertainments PLC (LON:MERL) supposed acquisition of some of SeaWorld’s assets, but the company has now blown that idea out of the water.
Moving on and there were plenty of headwinds for the Thorpe Park owner to contend with in the last quarter, with further terror attacks, bad weather and weaker inbound tourism all likely to weigh on revenues.
Given that toxic mix, shares have edged lower over the period and Barclays analysts don’t expect that trend to suddenly change with the announcement of the third quarter results on Tuesday.
Still, the Barclays team are looking for like-for-like sales growth of 1.6% overall, with LEGOLAND and the other theme Parks making up for a flat performance from the London-focused Madame Tussauds, London Eye etc where demand growth has been weaker.
Elsewhere, keep an eye out for any updates on LEGOLAND New York which is currently being built.
Significant announcements expected
Tuesday October 17:
Trading updates: Evraz plc (LON:EVR), Mediclinic International Plc (LON:MDC), Merlin Entertainments PLC (LON:MDC), Moneysupermarket.com Group PLC (LON:MONY), Pearson plc (LON:PSON), Segro PLC (LON:SGRO)
Finals: ASOS plc (LON:ASC), Bellway PLC (LON:BWY), DotDigitalGroup PLC (LON:DOTD), Bioventix PLC (LON:BVXP), Genedrive PLC (LON:GDR), Orchard Funding Group PLC (LON:ORCH), Utilitywise plc (LON:UTW)
Interims: BP Marsh & Partners (LON:BPM) , Virgin Money Holdings PLC (LON:VM.)