Tesco may seek to take in some pain from the expected rise in inflation in order to protect its price advantage over rival supermarket chains, says AJ Bell.
Despite its upbeat post-Christmas trading upate, year-end figures this week are expected to show that like-for-like sales growth fell short of expectations.
“The post-Christmas trading update feels a long time ago given the energy shock created by the conflict in Iran,” say Bell analysts.
“While the headlines from that statement suggested all was rosy in the garden – the company solidifying its position at the UK supermarket summit with its highest share of shoppers’ spending in a decade – the market dug through the weeds and found some details it didn’t like.
“Momentum slowed during the festive period and a poor showing for the company’s wholesale business Booker acted as a drag on the wider group.”
DIARY
Monday 13 April
- Full-year results from Churchill China
- Trading statement from Sirius Real Estate
- In the US, quarterly results from Goldman Sachs
Tuesday 14 April
- Trading statement from Oxford Instruments
- In the US, quarterly results from JPMorgan, J&J, Wells Fargo, Citigroup, BlackRock
Wednesday 15 April
- Full-year results from Saga
- Trading statements from Barratt Redrow, Hunting and Rank Group
- In the US, quarterly results from Bank of America and Morgan Stanley
Thursday 16 April
- Full-year results from Tesco
- Trading statements from Dunelm, Rentokil and Entain
- UK monthly GDP
- US unemployment claims
- In the US, quarterly results from Netflix and PepsiCo
Friday 17 April
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