It is reported today that analysts expect news of the worst underlying sales performance in more than a decade at Comet, when the parent company, Kesa, posts its interim results tomorrow.
Credit Suisse expects the UK division to register a 13 per cent fall in like-for-like sales for the second quarter, a deterioration from the 9.9 per cent fall for the three months to the end of July.
Comet, which until recently was one of the UK’s best performing retailers, has been hit by reduced sales of big-ticket items, such as washing machines and televisions. The leading credit insurer Coface has scaled back the amount of insurance cover for some of Comet’s suppliers to provide goods to the retailer.
When it last reported on 10 September, Kesa said it expected Comet to register a first-half loss.
Philip Dorgan, analyst at Panmure Gordon, said that while he certainly expects a cut in the final dividend, he would not be surprised if the group also scales back its interim payout as it moves to conserve cash.
Meanwhile, ahead f tomorrow’s results shares in Kesa Electricals have risen 5.9 percent to 98.75 pence, with analysts noting that the company will benefit from the euro gaining against sterling.
