Tuesday preview: Tesco, Whitbread, Halma

15th Jun 2009 17:30

The UK's leading retailer, Tesco will release first quarter sales figures on Tuesday that will dwarf those of its rivals. As ever, the market will focus on like-for-like (LFL) sales, and these are expected to pale in comparison with sector up-and-comer Wm. Morrison, which earlier this month announced a 9.2% year-on-year increase in LFL sales in the 13 weeks to 3 May. Predictions for LFL sales growth range from 3.5% to 4.3%, which would represent an improvement on last year's performance when LFL sales, excluding petrol, grew 3%, and a pick up from the fourth quarter when LFL sales rose 2.7%.Part of the reason for Tesco's underperformance in comparison with its peers is because of the supermarket's move to emphasise the value end of its product range, which has encouraged shoppers to trade down. The strategy was deemed necessary to head off the challenge from deep discounters such as Aldi, Lidl and Netto. While sales growth in its home market may look sluggish in comparison with its rivals, the group will justifiably emphasise that the future engine of growth for the group is its overseas operations. Analysts expect overseas sales to rise by about 20% year-on-year, though LFL sales may be negative.Whitbread, which will lose its status as a FTSE 100 stock later this month, gives an update on Tuesday on trading for the 13 weeks to 28 May. While customers seem to have retained their habit of enjoying a cup of java at the group's Costa Coffee chain, Whitbread's budget hotel chain Premier Inns has recently seen a slowdown in trade, as mid-market hotels start competing more vigorously on price.Health and sensor group Halma issues final results having warned in February that its full-year pre-tax profit would be at the lower end of market expectations; market estimates at the time ran from £79m up to £84.5m. The main reason for the underperformance has been reduced investment by UK water utilities, which has hit revenues in Halma's Water division. INTERNATIONAL ECONOMIC ANNOUNCEMENTS BoJ Intrest Rates (JPN) Capacity Utilisation (US) (14:15) Producer Price Index (US) (13:30)Consumer Price Index (EU) (10:00) Housing Starts (US) (13:30) Industrial Production (US) (14:15) ZEW Survey (GER & EU) (10:00) Consumer Price Index (EU) (10:00)Labour Costs (EU) (10:00)FINALS AssetCo, Halma, Record AGMS DDD Group, Dexion Alpha Strategies GBP Shares, Dexion Equity Alternative, Dexion Trading, IFR Capital, Premier Farnell, Signet Jewelers, Singer & Friedlander AIM 3 VCT, Ted Baker, Work Group, Zenergy Power TRADING ANNOUNCEMENTS Tesco, Whitbread UK ECONOMIC ANNOUNCEMENTS Consumer Price Index (09:30) Core Consumer Price Index (09:30) Retail Price Index (09:30) FINAL DIVIDEND PAYMENT DATE Hiscox