Tuesday preview: Debenhams, House Prices, Inflation

14th Sep 2009 15:49

Shares in high flying department store Debenhams have almost doubled over the last year but have been trending lower since May, suggesting that the market is becoming harder to please, especially in the wake of the lukewarm response to the company's fund raising. The company will have its work cut out for it tomorrow when it gives a sales update covering the fourth quarter of the company's fiscal year. Not only are the comparative figures from a year ago getting tougher but the company has seen trading disrupted by some reformatting within stores as it reduces its dependence on in-store concessions. In the 12 weeks to 23 May the company reported a drop of 0.8% in like for like (LFL) sales but broker KBC Peel Hunt thinks LFL sales in the fourth quarter will have fallen by about 4.5% to 5%, taking second half LFL sales to a level some 3% lower than a year earlier.Singer Capital Markets is a little more pessimistic, going for a 5.5% decline in fourth quarter LFL sales. Specialist homewares retailer Dunelm is another retailer, like Debenhams, which has virtually doubled in share price over the last year. Tuesday's full year results are expected to reveal pre-tax profit in the region of £52m or £53m.Despite the recession the company is in growth mode and has committed to 10 new store openings next year. Singer Capital Markets notes that the company has shown in the past it can handle up to 15 new openings in a trading year and that, given the depressed state of the property market, it would not be surprising if the company ramped up its opening programme.The Royal Institute of Chartered Surveyors will release an update on the stroke of midnight on the state of the UK housing market. Buyer enquiries have increased for nine months in a row and it would be a shock if August showed a reversal in the trend.Completed sales per surveyor should rise for the fifth month in succession while still remaining what might be regarded as normal levels. The Department for Communities and Local Government's house price index for July is expected to show a year on year slide of just over 9%, compared to a 10.7% annual fall in June.The consumer price inflation rate is forecast to fall back to 1.4% in the year to August from 1.8% in July, which is sure to attract the attention of the Bank of England, which has a target inflation rate of 2%. INTERIMSCello Group, Fairpoint Group, Hallin Marine Subsea International, NetDimensions, Vindon Healthcare, WinINTERIM DIVIDEND PAYMENT DATE4imprint Group, MondiQUARTERLY PAYMENT DATECryptologic Ld, Thomson ReutersFINALSAsian Citrus, Dunelm, Hargreaves ServicesTRADING STATEMENTDebenhamsEGMSColefax Group, Czech & Slovak Inv. TstAGMSAmur Minerals, Colefax Group, Mwana Africa, Oxford Instruments, Playwize, Southern BearFINAL DIVIDEND PAYMENT DATEDS Smith, SpiceQUARTERLY RESULTSQueen's Walk Investment Ltd.INTERNATIONAL ECONOMIC ANNOUNCEMENTSProducer Prices Index (13:30) (US)Advance Retail Sales (13:30) (US)Empire State Manufacturing Survey (13:30) (US)Business Inventories (15:00) (US)Consumer Prices Index (07:45) (FRA)Current Account (07:45) (FRA)ZEW Economic Sentiment (10:00) (GER)ZEW Current Situation (10:00) (GER)Labour Costs (10:00) (EC)ZEW Economic Sentiment (10:00) (EC)UK ECONOMIC ANNOUNCEMENTSRICS House Price Balance (00:01)Consumer Prices Index (09:30)Retail Prices Index (09:30)DCLG House Prices (09:30)