Retailers picking up pace after squeeze

The continued success of Sports Direct International and trading recoveries of Mothercare and Thorntons will place the retail sector in the spotlight this week.

Sports Direct is expected to post a 19 per cent leap in underlying profits to £287.3 million for the year to 28 April, while the City is pencilling in pre-tax profits of £215m. The firm has enjoyed a solid year, with sales soaring in the wake of rival JJB’s collapse.

Retailer Mothercare will update on turnaround progress when it publishes first-quarter trading figures on Thursday. The mother and baby goods store chain has been jettisoning loss-making outlets as part of a three-year restructuring plan, and could announce more closures at an update covering the three months to 30 June.

During the year to 31 March, Mothercare closed 56 UK stores – reducing its footprint by 7.2 per cent – to leave it with around 196 Mothercare outlets and 59 Early Learning Centre stores. The company is working towards a 200-strong estate by 2015, complemented by a stronger online division.

Chocolate retailer Thorntons will reveal further details of its trading revival today as its turnaround gathers pace.

The group’s fourth-quarter trading update comes after it confirmed earlier this month that full-year profits will beat expectations, thanks to a sales recovery and careful cost management.

It first upped profits guidance in April following a successful Easter, when it grew its market share to 4.7 per cent from 4 per cent a year earlier, with Thorntons branded UK commercial sales growing 
10 per cent to £27.4m.

Vodafone’s £9.1 billion move for Germany’s biggest cable operator, Kabel Deutschland, will be in the spotlight on Friday when the telecoms group reports first-quarter results.

The acquisition – which now looks unlikely to be ­derailed by rival interest from US media group Liberty Global – will boost the mobile phone giant’s ability to offer consumers bundled packages of telephone, broadband and television services.

The addition of Kabel Deutschland’s 8.5 million connected households would give Vodafone a total of 32.4 million mobile, five million broadband and 7.6 million direct TV customers in Germany.