Wm Morrison Supermarkets (LON:MRW) is set to update investors on its full-year performance this week. The results will follow the latest industry data revealed a rise in the grocer’s sales in the 12 weeks to February 24.
Morrisons’ share price fell in the previous session, giving up 1.36 percent to 224.90p. The stock is underperformed the broader UK market, with the benchmark FTSE 100 index shedding 53.74 points to close 0.74 percent lower at 7,104.31. The group’s shares have added a little over two percent to their value over the past year, as compared with about a 1.4-percent drop in the Footsie.
Morrisons results preview
Morrisons is scheduled to post its preliminary results on Wednesday and IG reports that according to a company-compiled consensus, the blue-chip grocer is expected to deliver another year of progress, with analysts anticipating significantly faster like-for-like growth (excluding fuel) than the previous year, an 8.8-percent rise in underlying pretax profit, a 7.5-percent gain in underlying earnings per share and a 12.9-percent rise in dividends.
“For Morrisons, it’s all about keeping up the momentum and demonstrating its strategy is continuing to work, even if new challenges from the likes of Brexit threaten to derail it,” IG’s market analyst Joshua Warner said in a note last week.
Latest Kantar numbers
The results will come after Kantar Worldpanel reported last week that Morrisons’ sales had climbed 0.8 percent in the 12 weeks ending February 24, while its market share dropped slightly 10.5 percent.
“Morrisons sells 43 percent of its goods on promotion – a higher proportion than any other supermarket,” Fraser McKevitt, head of Retail and Consumer Insight at Kantar Worldpanel, commented in a statement, adding, however, that the gap was closing, with the supermarket having “sold £45 million less through deals than the same period a year ago”.