Marks & Spencer, Next and Primark's parent firm are among a group of retailers set to update investors next week, offering a view on UK consumer sentiment heading into the Christmas period.
Recent data has pointed to a fragile consumer backdrop, with rising energy bills and concerns over the wider economic outlook weighing on some spending habits.
The Office for National Statistics reported that retail sales volumes fell by more than expected at 0.4% in September, amid slow demand for autumn and winter clothing lines.
M&S Half-Year Results Expected on Wednesday
High street bellwether Marks & Spencer will unveil its latest half-year results on Wednesday, showing the market how it has been navigating challenging conditions.
The retailer was severely knocked by a major cyber attack last year, which saw the business temporarily halt online clothing sales, but has since recovered ground.
It is expected to report a strong rebound in its clothing and home sales compared with a year earlier, when its online sales were weighed down heavily by the cyber attack.
As a result, profits are also expected to more than double to around £390 million for the half-year to September.
Nevertheless, it is still likely to be below the £413.1 million achieved two years ago, prior to the cyber attack.
M&S will also be hoping to show the continued strength in its food business, which has seen sales grow on the back of investments into its store formats.
Asos and ABF Updates
Another retailer seeking to bounce back from a cyber incident is Asos. The online fashion giant will reveal its figures for the past financial year on Thursday, providing an update on progress in its major turnaround plan.
However, the Topshop owner has seen shares drop 15% since the start of the month after it was targeted by cyber attackers.
Asos said the hacker, which impersonated a trusted contact to get log-in information, gained access to some personal data, including names and contact details.
Customers received a mobile app notification on Tuesday titled “Asos hacked”, which directed them to a Telegram account. The company has continued to trade despite the incident and will be keen to ease any concerns the hack may have impacted demand from its customers.
Elsewhere in retail, Primark owner Associated British Foods (ABF) will provide a full-year update on Wednesday.
It comes as the conglomerate, which also has large grocery and agriculture operations, prepares to split off the Primark business and list it on the FTSE 100 by the end of next year.
In recent months, Primark has revealed plans to start online home deliveries in a bid to accelerate growth as sales come under pressure from tight consumer budgets. ABF indicated last month that Primark sales are expected to have dipped 2.6% over the financial year.
Next Trading Update on Thursday
Next will also provide a trading update on Thursday after cutting its sales growth forecasts for the second half of this year in September due to concerns over consumer spending patterns.
It predicted sales growth of 2% for the six-month period, down from a previous estimate of 2.8%, amid caution over the impact of the rising cost of living, higher mortgage costs and a cooling labour market.
Investors will be hopeful that recent trading has not been as bad as in recent weeks, as the retailer pushes towards the key festive trading period.
