The biggest name in UK-listed fashion will take to the stock market’s catwalk on Wednesday, with Burberry Group PLC (LON:BRBY) showing off its third-quarter trading numbers, while its shares hold not far from all-time highs despite disruption in its key market of Hong Kong.
At November’s interim results, the FTSE 100-listed luxury brand said a small decline in profit margins was likely to get worse in the second half.
However, the market is upbeat as sales across other regions will make up for the slowing sales from higher-margin Hong Kong, as customers have been responding well to designs under its new leadership team.
The luxury goods firm is in the second year of chief executive Marco Gobbetti’s plan to shift the brand further upmarket under new creative director Riccardo Tisci.
Signs that this may be working were perceived in like-for-like retail store sales rising 4% thanks to new collections growing at strong double digits in the first half.
Wetherspoons boss looking for targets
Publican JD Wetherspoon PLC (LON:JDW) has pencilled a Wednesday trading update on the blackboard outside, although with the UK due to leave the EU at the end of the month one wonders what chairman Tim Martin will choose to fill the gap left by his traditional Brexit rhetoric.
Shareholders may hope the void is filled by updates on the company’s four-year pub opening plan, unveiled in December.
More likely, with margins under pressure in recent years, Martin will target his moan about the government’s recent minimum wage hike.
In a first-quarter update in November, the company reported that like-for-like sales in the 13 weeks to 27 October had risen 5.3% and total sales by 5.6%, a figure the company will likely hope to have improved on over the important Christmas trading period.
Sage eyed for progress on shift to recurring revenues
Meanwhile, Sage Group PLC (LON:SGE) is dealing with its own set of challenges as it battles to transition towards more recurring revenues from subscriptions.
The move to a business model with a higher proportion of revenue from software-as-a-service (SaaS) is expected to improve the quality of revenues while also enabling strong returns on investment.
However, the transition contributed to a 13% fall in profits last year, so shareholders will be hoping the pain will have lessened in the first part of the current year, as well as any signs of recovery in margins, which shrank sharply last year to 23.7% from 28.8%.
Significant announcements expected for Wednesday January 22:
Trading announcements: Burberry Group PLC (LON:BRBY), JD Wetherspoon PLC (LON:JDW), Sage Group PLC (LON:SGE), AJ Bell PLC (LON:AJB), Antofagasta PLC (LON:ANTO),Connect Group PLC (LON:CNCT), Close Brothers Group PLC (LON:CBG), Pets at Home Group PLC (LON:PETS), WH Smith PLC (LON:SMWH)
Economic data: US house prices
Published at Wed, 22 Jan 2020 06:00:00 +0000