HIGH STREET store Marks & Spencer’s latest trading figures will be the highlight of a week which also features updates from HMV, fashion e-tailer ASOS and pubs group Greene King.
Marks & Spencer has been under pressure from all angles in recent months, fending off criticism over its sales performance and its corporate governance amid anger over boss Sir Stuart Rose’s combined chief executive and chairman role.
M&S saw full-year profits tumble 40 per cent to £604.4m, while it was also forced to cut its annual dividend by 33 per cent – the first such move since 2000. The fourth quarter suggested a moderately better performance, with sales declines easing.
National Express and Arriva’s latest updates on trading are likely to throw a further spotlight on the struggling transport sector.
Under most pressure is debt-laden National Express, largely thanks to stalling revenues on the East Coast Main Line rail franchise, which it won two years ago before the recession struck. The company is in discussion with the Department for Transport over amending the terms of the deal, under which it must pay the Government £1.4bn by 2014 There has been speculation the National Express could walk away from the deal – a desperate move triggering defaults on its other franchises.
Arriva’s last update in April also warned of recession bearing down on growth in passenger revenue, most notably at its CrossCountry franchise.
Music, games and book retailer HMV Group has been refocusing on games and technology, centred on a new-style of “next generation” stores, while also cutting costs and upping its online presence.
Despite early scepticism over the plans, the first year showed they were starting to pay off with a 25 per cent surge in pre-tax profits in the 12 months to April 26.
Sales at the Waterstone’s chain fell 4.5 per cent on a like-for-like basis in the last 16 weeks of its financial year.
The HMV business had seen more sturdy trade, boosted by the UK & Ireland division.
Greene King reports full-year figures on Thursday, fresh from a recent £200m investor cash-call and pub buying spree.
The group bucked the trend in the wider embattled sector by announcing the takeover of 11 “high quality” pubs in early June, snapping them up from rival Punch Taverns, which is instead offloading outlets to pay off debts.
Internet fashion and accessories website ASOS – which stands for As Seen On Screen – has seen sales for the year to March 31 more than double, up 104 per cent to £165m.
The most prominent issue on Tesco shareholders’ minds as they arrive for this year’s annual meeting in Glasgow, on Friday, will be the chain’s performance in the face of tougher competition in the sector.
The firm, which has reported a “solid start” to the trading year, is lagging behind the growth of its competitors Morrisons and Sainsbury’s.
It has also seen rivals take bites out of its market share as consumers shop around for the best deals in the recession.
While Tesco recently reported first quarter sales were up 4.3 per cent, this compares to a 7.3 per cent increase for Morrisons and 7.8 per cent at Sainsbury’s.
Tesco has fought back with heavy discounts and a revamp of its Clubcard, which has new offers allowing double the value of money-off vouchers on certain product ranges.
■ Companies reporting this week include: Today: Finals, ASOS. Trading update; Premier Foods Tomorrow: Finals, Assura, Carpetright, HMV Wednesday: Trading updates; Marks & Spencer, National Express, John Wood Thursday: Finals; Greene King.
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