Wetherspoons sales set to shrug off wet weather for sales growth
Pub chain JD Wetherspoon is expected to reveal further sales growth and strong profits this week, amid hopes punters shrugged off the wet weather to visit their venues.
The company, which runs 809 pubs across the UK, will update investors in a trading update on Wednesday July 10, ahead of its annual results.
In its previous update in May, Wetherspoons reported that like-for-like sales increased by 5.2% over the 13 weeks to April 28 compared with a year earlier, with total sales up 3.3%.
The group will be hoping it will receive a boost over the summer to put on track for stronger growth in the final quarter of the year to July.
Anna Barnfather, research analyst at Liberum, predicted it will report like-for-like growth of around 6% for the current quarter.
Nevertheless, total sales will be impacted by the recent disposal of some pubs, with the company exiting 18 pubs in the year-to-date, while it opened two.
Wetherspoons is expected to conclude its disposal programme in the coming months, with 17 of its pubs still on the market for sale in May.
In its previous update, the Tim Martin-founded pub firm also said it was on track to deliver annual profits at the top of expectations after strong growth and cost efficiencies.
As a result, it is expected to post pre-tax profits close to £75 million for the year.
Derren Nathan, head of equity analysis at Hargreaves Lansdown, predicted it could see some benefit from its decision to show England’s Euro 2024 matches across its pubs, despite usually shying away from showing sport.
“The England men’s football team’s arguably fortunate progress in the Euros won’t be doing bar takings any harm, but that may be somewhat offset by the wettest spring since 1986.
“Investors will be looking out for any further changes to guidance.”
Shareholders will also be looking for an update on the group’s debts, which stood at £685 million at the end of April.
Mr Nathan added: “So far, it’s not made too much progress this year in bringing down debt levels.
“Positive movement on that front and clarity over future expansion plans will be key to determining whether a return to the dividend list might be on the table.”
