After a fabulous summer of sun in the UK, investors will be keen to see if blue-chip clothing retailer Next Plc (LON:NXT) performed well when it reports first-half results on Tuesday.
In a second-quarter trading update published on 1 August, the FTSE 100-listed company said its full price sales increased by 4.5% in the first half, with online sales up 15.5% and retail sales down 5.3%.
Next then maintained its estimate for full-year 2019 pre-tax profit at £717mln, a 1.3% decrease on the prior year.
However, clouds have begun to gather over the sector in the past few months, and Next’s update showed sales growth slowed in the second quarter as it said some sales might have been brought forward from August.
Graham Spooner, investment research analyst at The Share Centre said the fact that full-year guidance was not raised at that point was also seen as disappointing by some, so again there will be much attention paid to that.
UU hit by volatile weather
Meanwhile, following an unexciting update from mid-cap water peer Pennon Group plc (LON:PNN) on Monday, blue-chip multi-utility United Utilities Group PLC (LON:UU.) will also issue a trading statement on Tuesday having recently outlined its business plan for the 2020-25 period.
The company is proposing a 10.5% reduction in real terms in average bills over the period, which will be welcomed by customers, if not by shareholders.
Those shareholders will be more interested in whether United Utilities can reverse a decline in pre-tax profits reported in its full-year results back in May.
“The significant progress we have made positions us well as we look towards the next regulatory period and gives us confidence that we can rise to the longer-term challenges resulting from a growing population, affordability concerns and the impact of more volatile weather,” said chief executive Steve Mogford in the results statement.
The weather has certainly been volatile this year, ranging from the 'Beast from the East' to the scorching Indian summer.
Less fizz for AG Barr
Further down the food chain, fizzy drinks maker AG Barr PLC (LON:BAG) has been having to adapt to the change prompted by the UK government’s sugar levy, and earlier this year decided to cut the amount of sugar in its famous Iron Bru recipe.
Interim results from the soft drinks maker on Tuesday will provide an opportunity for investors to see more of how the new formulation is going down with consumers.
In a preview, Hargreaves Lansdown equity analyst George Salmon said: “It’s easy to see why the decision to change a winning formula prompted a few worries, although recent updates have proven just the tonic to ease concerns. The new recipe has continued to grow market share.”
“However”, the analyst added, “Barr’s management is keeping the champagne on ice for now. More money is to be poured into the advertising budget over the second half.
“While that’ll limit margin progression, we think it’s a sensible move. Preservation of the brand for the long-term is the order of the day, and it’d be unwise to cut corners at this crucial juncture.”
Significant events expected on Tuesday September 25:
Trading updates: United Utilities Group PLC (LON:UU.), One Media IP Group PLC (LON:OMIP)
Interims: Next PLC (LON:NXT), AG Barr PLC (LON:BAG), Alltitude Group PLC (LON:ALT), Animalcare Group PLC (LON:ANCR), Card Factory PLC (LON:CARD), Ebiquity plc (LON:EBQ), Fireangel Safety Technology Group PLC (LON:FA.), Harvey Nash Group plc (LON:HVN), Keystone Law Group PLC (LON:KEYS), Learning Technologies Group PLC (LON:LTG), Mortgage Advice Bureau Holdings PLC (LON:MAB1), Mi-Pay Group PLC (LON:MPAY), Osirium Technologies PLC (LON:OSI), Premier Technical Services Group PLC (LON:PTSG), Sumo Group PLC (LON:SUMO), S&U PLC (LON:SUS), WANdisco PLC (LON:WAND)
Finals: Close Brothers Group PLC (LON:CBG), Blancco Technology Group PLC (LON:BLTG), Scancell Holdings Plc (LON:SCLP), Swallowfield plc (LON:SWL)
Economic data: FOMC meeting begins; US consumer confidence; US house prices indexes