Agenda: Tesco, WHSmith and Majestic Wine update

WHSmith

The stationery specialist updates the market on Wednesday with details of its third-quarter trading performance.

WHSmith posted a 4% uplift in pre-tax profit to £83m in its first half, despite a 3% fall in like-for-like sales at its high street arm.

Its travel division continued to motor, enjoying a 5% jump in like-for-like sales and an 11% spike in profit to £39m.

Analysts and investors will be seeking signs that the 225-year-old retailer has continued that momentum into the second half of its financial year.

Majestic Wine

The wine merchant, which lost managing director John Colley last month to Hobbycraft, is due to unveil its full-year results on Thursday.

The market will be seeking an update on the wine specialist’s first-ever entry-level wine range, which it launched in April this year, and the impact of boss Rowan Gormley’s ongoing transformation plan.

The retailer, which pays staff above the national living wage, has its sights set on a £500m sales target and reported retail sales growth of 6.2% during the festive season.

Majestic recorded a £4.4m loss at the half-year mark in November and said it expected full-year profits to be in line with expectations due to cost control measures.

Tesco

The supermarket giant unveils details of its first quarter trading performance of Friday, with the City expecting Britain biggest retailer to continue its recent momentum.

In April, Tesco reported its first increase in full-year like-for-like sales in seven years, as operating profits surged 29.9% to £1.28bn.

Data from Kantar Worldpanel suggests the grocer has continued its robust performance into its new financial year, with figures showing Tesco’s sales rose 1.8% in the 12 weeks to May 21.

Although Tesco unveiled details of a tie-up with Dixons Carphone last month, the attention of analysts and the media will remain largely on its £3.7bn acquisition of Booker, which is the subject of a probe by the Competition and Markets Authority.

Despite his efforts in transforming Tesco’s fortunes, the grocer’s boss Dave Lewis’ remuneration package could spark a shareholder backlash at its AGM, also being held on Friday.

Pirc has urged investors to vote against the six-figure relocation package paid to Lewis to help him relocate closer to Tesco’s Welwyn Garden City headquarters.