City analysts are predicting decent results from Bradford-based supermarket chain Morrisons on Thursday, despite signals of a sales slowdown in recent months.
Wet weather and difficult like-for-like comparisons with last year's World Cup induced sales spike caused a fallback in year-on-year sales growth to three per cent in the 23 weeks to July 15.
The City retains a positive outlook for healthy interim figures this week, largely because Morrisons chairman Sir Ken Morrison stated the group is making "good progress" towards cost and margins targets.
However, Evolution Securities said the group has long-term strategic issues in a sector that will only become more challenging. "First-half profits might surprise on the upside because of good management of costs and margins, but management is likely to flag a more difficult trading environment," said an ES spokesman.
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