Wednesday preview: Burberry reports third quarter trading update

(ShareCast News) - Burberry is expected to report growth in like-for-like retail sales in its third quarter trading update on Wednesday, supported by tourism spending in the UK.The luxury fashion brand will report retail sales only and the focus will be on like-for-like trends.UBS expects a 1% increase in like-for-like sales, driven by strong spending at Global Blue duty-free stores in airports in the UK and improved business in Hong Kong and in Mainland China.The bank sees retail organic growth at 3% with a 2% contribution from expansion of retail space.Total retail sales are forecast to gain 21% year-on-year to £732m, boosted by foreign exchange tailwinds.For the full year, UBS predicts revenues of £2.76bn, representing a 2% fall in organic growth. Adjusted full year pre-tax profit is forecast at £437m, including a £110m contribution to retail and whole earnings before interest and tax from favourable foreign exchange rates. Ahead of the third quarter trading update, Burberry confirmed that new chief executive Marco Gobbetti will join the retailer on 27 January, sending its shares to an 18-month high.Joining from LVMH's luxury brand Céline on 27 January, Gobetti will initially be given the role as executive chairman of the Asia Pacific and Middle East regions, not taking over as chief executive officer from current incumbent Christopher Bailey until early July. Meanwhile, pub operator JD Wetherspoon also reports its trading statement on Wednesday. Numis has estimated second quarter like-for-like sales growth of between 3-4%.Management expects full year like-for-like sales to rise 1-2% and EBIT margins of 7%."The former looks conservative in our view (Numis estimate 2.5%) but we expect the margin outlook to deteriorate through the year," Numis said."The first quarter margin was strong at 8.6%, we expect around 8% in the second quarter before cost inflation takes hold in the second half of the year taking the full year margin down to around 7%." Wednesday 18 JanuaryINTERIMSBest of the BestINTERIM DIVIDEND PAYMENT DATEBritish Smaller Companies VCT, Circle Property , Ventus VCT D Shs, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus 2 VCT D Shs, Ventus VCT, Ventus VCT 'C' SharesQUARTERLY PAYMENT DATEAssuraINTERNATIONAL ECONOMIC ANNOUNCEMENTSCapacity Utilisation (US) (14:15)Consumer Price Index (EU) (10:00)Consumer Price Index (GER) (07:00)Consumer Price Index (US) (13:30)Industrial Production (US) (14:15)MBA Mortgage Applications (US) (12:00)Q3Axis Bank Ltd GDR (Reg S)SPECIAL DIVIDEND PAYMENT DATEBritish Smaller Companies VCTAGMSDiploma, Game Digital, Majedie InvestmentsTRADING ANNOUNCEMENTSLadbrokes Coral GroupUK ECONOMIC ANNOUNCEMENTSClaimant Count Rate (09:30)FINAL DIVIDEND PAYMENT DATEFocusrite, Northamber