The retailer’s full-year results are unlikely to throw up any major surprises after the company said in January that it expects its full-year pre-tax profit to be at least £400mln, a major improvement on market expectations of £295mln.
The group said demand over the Christmas period had been robust with like-for-like sales in the second half rising over 5% as customers flooded in through both its physical and retail sales channels.
Instead, investors will be looking at what exactly is behind the company’ stellar performance, as well as how it plans to maintain it into the current year, with the firm having already guided for 2021 profit growth of 5-10%.
There will also be interest in the impact of the latest lockdown restrictions, as well as whether JD is planning any more acquisitions.
Half-year results from Revolution Bars Group PLC (LON:RBG) are unlikely to make for pleasant reading on Tuesday as the chain counts the costs of more closures brought on by the UK’s lockdown measures.
Instead, investors will be looking to the firm’s outlook as bars look set to reopen following the gradual relaxation of restrictions on April 12 and in mid-May.
The company has already said it plans to 20 bars this month, moving onto the whole 66-strong estate in May when indoor service will be allowed.
Revolution also said it expects “significant pent-up demand” when lockdown is lifted, as consumers desperate for a night out flood into its branches.
On the macro front, with 2020 seeing UK GDP slump 9.8%, economists are optimistic that the UK will outperform its European counterparts this year in terms of growth, boosted by the government firing the gun on vaccine approvals earlier than their continental counterparts.
Arguably, another set of figures being released by the Office for National statistics has greater significance this week, says Danni Hewson, financial analyst at AJ Bell.
She’s eyeing trade data, which will also be released on Tuesday, after trade between the UK and EU fell significantly in the first month of this year, with exports to the EU down 40.7% and goods coming the other way sliding 30%.
“February’s figures will help determine if that decline was a blip or the start of a long-term shift,” Hewson said.
“Brexit most certainly has played a key part and a recent survey carried out by the Federation of Small businesses found that one in five exporters contacted had temporarily paused sales to the EU because of red tape.
“Teething troubles can only be blamed for so long and February’s figures will be weighed carefully. Of course, Brexit hasn’t been the only issue affecting trade, Covid has disrupted the global status quo and supply issues could play a major part in dampening post-pandemic recoveries.”
Significant announcements expected
Finals: JD Sports Fashion PLC (LON:JD.), Good Energy Group Plc (LON:GOOD), JTC PLC (LON:JTC), Next Fifteen Communications Group PLC (LON:NFC), Northbridge Industrial Services Plc (LON:NBI), Sourcebio International PLC (LON:SBI), SigmaRoc PLC (LON:SRC)
Interims: Revolution Bars Group PLC (LON:RBG)
Economic data: UK GDP, UK production, US inflation