![\"Next\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/11\/Next-St-James-Q.png\")
Retail stalwarts Next, Tesco<\/strong> and Greggs<\/strong> will provide the first reports on Christmas trading ahead of further rises in costs expected in the coming months.<\/p>\n Fashion and furnishings group Next continues to offer the right product, at the right price points and in the right format to its target demographic, as evidenced by its uncanny knack of beating earnings expectations, say analysts at AJBell.<\/p>\n October\u2019s third-quarter trading statement beat expectations and prompted a further upgrade to guidance from boss Lord Simon Wolfson for full-price sales, total sales, pre-tax profit and earnings per share. <\/p>\n This fiscal year to the end of January is a 53-week year, compared to the usual 52-week period last time around. Management currently believes that the extra week will add \u00a320 million to profits and this does not form part of the current guidance given by management. Next will present the extra week, and any sales and profit uplift, as an exceptional item in the full-year accounts.<\/p>\n Thereafter, analysts will dig into full-price sales trends at the UK online and physical retail operations, the online international arm and how Next Platform continues to drive internet sales in particular, as it adds more brands \u2013 more than 40% of Next online sales in the UK now come from other brands.<\/p>\n Analysts will also look for any update on incremental costs from wages, national insurance contributions and packaging taxes, both in the year just ending and the new financial year about to begin. Comment on trade, tariffs, sourcing and shipping will be of interest too.<\/p>\n Next will pay its interim dividend of 87p per share on 5 January. The FTSE 100 firm will also pay a final dividend, which analysts believe will be 179p a share. On top of that will come a special dividend, of some 310p per share, which represents what Next terms as surplus cash generated. <\/p>\n The company halted its share buyback for the year at \u00a3131 million, on the grounds that purchasing stock at current levels does not meet its 8% equivalent rate of return criterion and has therefore promised a special dividend instead.<\/p>\n Tesco<\/strong><\/p>\n The battle of the retailers\u2019 Christmas advertising campaigns has been fought and now is the time to see how that shaped market shares and sales, profits and cash flow.<\/p>\n Despite a recent slip Tesco\u2019s share are still up by a fifth in the past year and stand very close to levels last seen in 2010. That may reflect market share gains, since Tesco has increased its share of the UK grocery market to 28.3% from 28%, as of November, according to Kantar.<\/p>\n Chief executive Ken Murphy\u2019s outlook assumes a decrease in full-year profits, due to the competitive environment and also increased costs in the form of food, ingredients, wages and utility bills.<\/p>\n AJ Bell says it will be interesting to see if Mr Murphy has an initial stab at quantifying the impact upon profits for the year to February 2027 from the Budget\u2019s reforms to business rates for large properties, though he may leave that until April\u2019s full-year results. Either way, this Christmas and third-quarter trading update will be measured against the guidance given back in October.<\/p>\n Greggs<\/strong><\/p>\n July\u2019s profit warning did not help the company\u2019s shares, down 40% over the past year. Chief executive Roisin Currie attributed that setback to hot weather, weak high street footfall and the phasing of increased costs as the company built a new national distribution centre in Kettering and continued to add to its store estate. <\/p>\n October\u2019s third-quarter update featured no incremental bad news, but no fresh good news, either, and questions continue to linger as to whether Greggs has expanded too far, too fast and made its menu too complicated. Worries over the state of the UK economy and weak high street footfall have not helped sentiment, either<\/p>\n Staff pay is the biggest cost, so analysts will been to see if Ms Currie discusses the increases in both the minimum wage and the national living wage announced in November\u2019s Budget.<\/p>\n Greggs appears to have backed away from an initial plan to open 140-150 outlets this year and cut that back to around 120, even as the firm has stuck to its long-term goal of 3,000 sites. Net store openings in the first nine months came to just 57 (130 openings and 73 closures, including 39 relocations).<\/p>\n DIARY<\/u><\/strong><\/p>\n Monday 5 January<\/strong><\/p>\n Tuesday 6 January<\/strong><\/p>\n Wednesday 7 January<\/strong><\/p>\n Thursday 8 January<\/strong><\/p>\n Friday 9 January<\/strong><\/p>\n \t <\/div>\n![\"Greggs\"](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2017\/10\/2017-10-05-16.49.53-scaled.jpg\")
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