The week ahead in business and finance

Monday January 11

Tough trading conditions have wreaked havoc on many UK retailers over the key Christmas trading session. However, AO World is set to emerge the victor from the challenging environment when it posts its third quarter results today.

In November, after chief executive John Roberts said momentum built in the second quarter had set the business up well for the full-year, investors remain confident the retailer can deliver a stellar set of results. Unlike many other retailers, JPMorgan Cazenove think AO World also performed well operationally over the Black Friday trading period, as it experienced “no website issues as a result of increased demand”. As a result, sales are expected to grow by 31pc in the third quarter.

However, full-year earnings is expected to be hurt by an increase in warehousing costs of around £2m to account for further storage in a second site location.

Trading updates: AO World, Robert Walters, Taylor Wimpey

Economics: Harmonised Competitiveness Indicators (EU)

Tuesday January 12

A little website disruption on Black Friday won’t hamper Boohoo.com’s trading update tomorrow, as its full-year sales figures are expected to come in ahead of forecasts. At its interim results in September, the online clothing retailer raised its full-year sales growth target by 10pc to 35pc.

Like AO World, analysts in the City believe Black Friday was “well executed” by the group, despite some website disruption. Boohoo started its sale in December 10 days later than the previous year, and this should boost margin and sales performance.

John Stevenson, of Peel Hunt, said: “As with other online retailers, we believe the consumer continued to shop online well into December.” The figures from its latest trading update are also set to benefit by next-day delivery promotions.

AGMs: MTI Wireless Edge, Fenner

Trading updates: Greggs, Morrison (Wm) Supermarkets, Debenhams, Michael Page International, Grafton Group, Boohoo.com, Saga

Economics: BRC Sales Monitor, Industrial Production, Manufacturing Production

Wednesday January 13

As the only one of the “Big Four” supermarkets to increase its market share in the 12 weeks to December, investors will be keen to see how Sainsbury’s fared during the key festive trading period when it publishes it trading update on Wednesday. Given that it is performing well, the grocer could surprise with positive like-for-like sales growth. Pre-tax profits for the year were recently upgraded to around £585m. However, it will be the confirmation that Sainsbury’s attempted to snap up Home Retail unsuccessfully in November that will be at the forefront of investors minds. Analysts at Cantor Fitzgerald said the bid was “a defensive move in a grocery sector that has limited growth potential and a need to recycle unprofitable floor space”.

Final Result: Shoe Zone

AGMs: Fenner, Baring Emerging Europe, Game Digital

Trading updates: Dunelm Group, Fenner, Hays, Sainsbury (J), Tullow OiL, Barratt Developments, Xaar, Connect Group

Economics: Industrial Production (EU), MBA Mortgage Applications (US), Crude Oil Inventories (US), Beige Book Fed Survey (US), Treasury Budget Statement (US)

Thursday January 14

Associated British Foods is one of the many retailers set to update investors on the key Christmas trading period this week. After an unusually warm winter, a factor that has already weighed on the results of its peers, focus will turn to Primark’s performance in the 16 weeks to January on Thursday. Despite the mild weather, analysts in Barclays believe the group can still post a sales increase of around 1pc in the first quarter.

Florence Dohan, of Barclays, said: “Admittedly, Primark should not be immune to the unusually warm weather across Europe, nor to lower footfall in its Paris stores.” However, its business model offers flexibility as it does not resort to seasonal sales, like many of its peers, and although it does not have an online presence, Primark is still considered as a “destination store” in many markets. This may help it escape the January blues currently weighing on other retailers.

AGMs: Cambria Automobiles, Catalyst Media Group, Debenhams

Trading updates: Tesco, Home Retail Group, JD Sports Fashion, Associated British Foods, Jupiter Fund Management, Premier Oil, ASOS, Booker Group, Burberry Group, Ashmore Group, Hilton Food Group , SuperGroup, Mothercare, Moss Bros

Economics: Continuing Claims (US), Import and Export Price Indexes (US), Initial Jobless Claims (US), Philadelphia Fed Index (US)

Friday January 15

The profit downgrade at the end of 2015 is likely to weigh on investors minds ahead of Friday’s interim management statement from Bovis Homes. Pre-tax profits for the year is estimated to come in around the £160m mark amid further cost pressures and delays in bringing new sites through planning.

Nonetheless, the group said its sales rate had strengthened in the autumn sales period. However, Clyde Lewis, of Peel Hunt, warned: “For Bovis’ shares to outperform the peer group, we believe that the business will have to reverse the trend of 2015 and start closing the operational performance gap - to us, this looks unlikely in the near term.” In November, the group also said it had made “good progress” with reservations for 2016 - they stood at 1,650 two months ago, which is 18pc higher than at the same point last year.

AGMs: Brack Capital Real Estate Investments

Trading updates: Experian, Bovis Homes, Bonmarche Holdings

Economics: Wholesale Price Index (GER), Balance of Trade (EU), New Car Registrations (EU), Producer Price Index (US), Retail Sales (US), Capacity Utilisation (US), Industrial Production (US), Business Inventories (US), Manufacturing Inventories (US), Retail Sales Inventories (US), U. of Michigan Confidence (Prelim) (US)