By Basant El-Faramawy
Major UK retailers including Marks & Spencer, Primark, Next and Asos are scheduled to publish trading updates next week, offering fresh insight into consumer sentiment ahead of the crucial Christmas period. The announcements follow official data showing retail sales volumes fell 0.4% in September, a sharper decline than economists had forecast.
Marks & Spencer half-year results
Marks & Spencer will release its half-year results on Wednesday. The retailer is expected to report a strong rebound in clothing and home sales compared with a year earlier, when a major cyber attack halted online clothing sales. Profits are forecast to more than double to around £390 million for the six months to September, though still below the £413.1 million recorded two years ago before the cyber incident. The company's food division, buoyed by store format investments, is also expected to show continued growth.
Asos faces cyber attack fallout
Online fashion giant Asos will publish its full-year results on Thursday while dealing with a recent cyber attack that caused its shares to drop 15% this month. Hackers impersonated a trusted contact to access personal data, prompting the company to notify customers via its mobile app. Asos said it continues to trade normally and aims to reassure investors that the breach has not dented customer demand.
Primark owner prepares for spin-off
Associated British Foods (ABF), which owns Primark, will provide a full-year update on Wednesday. The conglomerate plans to separate Primark and list it on the FTSE 100 by the end of next year. Primark recently announced plans to launch online home deliveries to drive growth as sales face pressure from tight consumer budgets. ABF indicated last month that Primark sales are expected to have dipped 2.6% over the financial year.
Next lowers sales growth forecast
Next will issue a trading update on Thursday after cutting its second-half sales growth forecast in September from 2.8% to 2%. The retailer cited caution over the rising cost of living, higher mortgage costs and a cooling labour market. Investors will be watching for signs that recent trading has held up better than feared as the festive season approaches.
