Weekly Outlook: Kingfisher and JD Sports to report

Sponsored by J. Stern & Co.

AI: why investors should look beyond the technology sector

25 March 2024

|

Monday 25 March

Full-year results from Central Asia Metals and Henry Boot
US new homes sales
In the Asia, quarterly results from Petrochina
Kingfisher full-year results

DIY giant Kingfisher will report their full-year results on Monday. The firm owns UK brands B&Q and Screwfix, alongside Castorama in France.

Kingfisher’s share price has fallen over a third since hitting a recent high in the summer of 2021.

AJ Bell investment director Russ Mould , head of financial analysis Danni Hewson, and AJ Bell investment analyst Dan Coatsworth said the fall reflects “soggy” consumer confidence, higher interest rates and the cooling of the Covid lockdown boom in DIY.

“A pair of profit warnings, in September and then November, have hardly helped either,” they said. “In the space of three months, chief executive Thierry Garnier cut the firm’s adjusted pre-tax profit guidance for the year to January 2024 to £560m from the initial steer at this time last year of £630m, to represent the second consecutive year of falling profits.

“Analysts have pencilled in £557m and after the well-trailered disappointments of fiscal 2024 any guidance from Thierry Garnier for the year to January 2025 may be of more importance than the historic figures. The current consensus is for a flat outcome and adjusted pre-tax earnings of £560m.”

Tuesday 26 March

Full-year results from John Wood, 888, Mobico, Forterra, Michelmersh Brick and Petershill Partners
First-half results from Smiths Group, Bellway and YouGov
Trading statement from Ocado
Japanese core inflation
US durable goods orders
US Case-Shiller house price index
US Conference Board consumer confidence index
In Asia, quarterly results from BYD and China Telecom
In the US, quarterly results from McCormick and GameStop

Wednesday 27 March

Full-year results from Vanquis Banking, S4 Capital, Playtech and Strix
First-half results from James Halstead
US oil inventories
In the US, quarterly results from Cintas and Carnival

Thursday 28 March

Full-year results from Secure Trust Bank, Shanta Gold and EnQuest
Nationwide UK house price index
US weekly unemployment claims
Japanese unemployment
In Asia, quarterly results from Air China
In Europe, quarterly results from H & M and Jungheinrich
In the US, quarterly results from Walgreen Boots Alliance
JD Sports full-year trading statement

JD Sports will unveil its full-year results on Thursday, following the announcement of a profit warning back in January.

Over the period, the sportswear firm’s share price has dropped by a third, leaving them at roughly the same level as April 2019.

AJ Bell’s Mould, Hewson and Coatsworth said: “A profit warning in January, which cited unhelpful weather for sales of fleeces, pushback on high prices in the UK and margin pressure in the USA has hardly helped sentiment toward the stock during a time when the murky economic outlook and cost-of-living crisis remain a concern, at least in the UK.

“Lingering doubts over new boss Régis Schultz’s aggressive, and costly, store roll-out plan are weighing on the stock, while a Christmas profit warning from major brand partner Nike serves to support the argument that the share price fortunes of both firms are inextricably linked.”

The trio added: “Supporters will then be hoping that JD Sports sticks to the downgraded profit forecast that it offered in January, when Mr Schultz cut expectations for the year’s adjusted pre-tax profit figure to between £915m and £935m from the initial steer of £1.04bn.

“Analysts currently expect a modest 6% advance in 2025 to £979m, with a broadly flat operating margin of 9.2%, thanks to new store investment, spend on IT and also the integration of acquisitions, such as Courir and IRSG.”