Weather fails to hamper Domino's growth

PIZZA delivery firm Domino's will give a trading update ahead of its annual meeting on Tuesday after a strong start to the year despite the heavy snow.

Although winter weather hampered deliveries from some of its stores, it still managed to post impressive like-for-like sales growth of 11 per cent for the first six weeks of the year.

The cold weather – as well as the popularity of television shows such as The X Factor – meant customers opted to stay at home and dial for a pizza instead.

Domino's has used a number of marketing tactics in the last year, including Two for Tuesday promotions and sponsorship of Britain's Got Talent on ITV, while the coming World Cup could also boost sales.

Numis Securities analyst Douglas Jack said: "The AGM statement should indicate that like-for-like trading has remained strong. There are plenty of levers to drive sales higher, including more advertising and extended trading hours, in addition to which comparatives should be reasonably easy between March and June."

The City will be hoping for further sales momentum from parenting chain Mothercare in an update on Thursday after the retailer enjoyed healthy Christmas trading.

Mothercare saw a "particularly good" festive season – as well as a surge in Christmas Day shopping online – as it posted its 18th consecutive quarter of like-for-like sales growth in the 13 weeks to 8 January.

In the UK, sales rose 4.2 per cent, helped by demand for the Spin pushchair – which allows parents to quickly change the direction their child is facing – and toys such as the Retro Robot at Early Learning Centres.

The firm has also recently announced a tie-up with Boots on an exclusive range of clothing and accessories to be sold through the retailer's high street stores. Numis analyst Andrew Wade said the move was "very positive" and could add 5 million to profits in the year to March 2012.