Wednesday preview: Boohoo interims and mortgage approvals in focus
Fast-fashion retailer Boohoo will release its interim results, having lifted its full-year guidance earlier this month following strong revenue growth in the first half.
Michael Hewson, chief market analyst at CMC Markets, pointed out that there hasn't been much in the way of good news for the UK retail sector so far this year, but said "it would be incorrect to assume that there haven't been any bright spots".
"There have actually been quite a few, including Boohoo.com which only recently upgraded its profit expectations in a preview to this week's first half trading update, announcing that group sales growth was now expected to be between 33% and 38%, up from 25% and 30%, with margins expected to remain steady at 10%.
"The company also recently acquired the on lien businesses of Karen Millen and Coast for £18.2m, and with the shares recently pushing up to a record high, optimism is high that the company can continue to improve margins and profits."
On the UK data calendar, mortgage approvals for August and the CBI distributive trades survey are due.
Pantheon Macroeconomics said: "The new buyer enquiries balance of the RICS Residential Market survey remained above zero for the third consecutive month in August, having been below zero for the prior 28 months.
"As a result, we think that house purchase mortgage approvals by the main banks rose slightly to about 43.5K in August, from 43.3K in July."
As far as the Confederation of British Industry's distributive trades survey is concerned, Pantheon said it has been "too downbeat" this year.
"The reported sales balance collapsed to -49 in August- its lowest level since December 2008- from -16 in July. By contrast, the official measure of retail sales volumes fell by just 0.2% month-to-month.
"We look for the balance to rebound to -10 in September, though its message should not be taken too seriously at present."
Wednesday September 25
Boohoo Group, Ergomed , Mi-Pay Group, Mission Marketing Group, WANdisco, XLMedia
INTERIM DIVIDEND PAYMENT DATE
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UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
FINAL DIVIDEND PAYMENT DATE