Companies reporting next week

NEWS from the High Street reaches its peak next week with Christmas trading statements from some of the sector's biggest names. There will also be an update from troubled telecom stock Marconi.

The festive news from the clothing sector so far has been almost all good and Marks & Spencer is expected join the club on Wednesday by reporting a strong showing over the festive season.

Analysts predict like-for-like sales growth of at least 4% as the group continues its recovery under boss Luc Vandevelde but some admit they would be disappointed if figures were not higher.

A note from City stockbroker Deutsche Bank last month led to speculation that Woolworths may have suffered over Christmas because of poor stocking of music and entertainment products.

Woolworths has since admitted to stock problems in one or two stores and nervy analysts will be hoping the group can hit forecast sales growth of at least 5% on a like-for-like basis for the Christmas period on Thursday.

The chain, now chaired by former Railtrack boss Gerald Corbett, will also be updating the City on the progress made in reducing a £100m stock overhang since demerging from Kingfisher in August.

Chemist and beauty chain Boots could be one of the retailers to miss out this Christmas as tough competition from the supermarkets continues to hold back its like-for-like growth.

Boots reports on Thursday and analysts predict the group, which has launched a series of aggressive promotions in recent weeks, may have seen only marginal growth as consumers go elsewhere for shower gel and headache pills.

'I think Boots could be rather disappointing,' said Rowan Morgan of broker Teather and Greenwood. In November, the group revealed an 8% increase in profits for the half-year but like-for-like sales edged ahead by just 0.5%.

Tesco, Sainsbury and Safeway are also set to highlight how much was spent on food and drink in the run-up to the festive season.

Morrisons and Asda set the tone this week with strong sales so analysts are expecting like-for-like growth of at least 5% from the other three.

Sainsbury's will start the ball rolling on Monday, followed by Tesco and Safeway on Tuesday.

Store refurbishments may hold back Safeway's growth, but Richard Ratner at Seymour Pierce, who predicts a cooling in retail sales, picks the group as one of his shares for 2002. 'It's cheap compared with its peers and there is a huge benefit set to come through from store refurbs and product improvements.'

One of the week's highlights will be Tuesday's third quarter trading update from Marconi, the embattled telecoms group currently trying to reduce its debt mountain.

In November, the figure stood at £3.5bn but since then Marconi has sold a raft of non-core businesses in an attempt to raise £500m by March - a target stockbroker Gerrard believes has already been achieved.

The third quarter is typically a weak one for Marconi and it is forecast to show a decline in core sales. But the benchmark, says Gerrard, will be how the level of sales affects Marconi's goal of achieving net revenues of £800m by the end of March. If this can be achieved, loss-making Marconi should be able to break even.

On Tuesday, engineering conglomerate Tomkins is forecast by stockbrokers Gerrard to post a slump in first-half pre-tax profits - from £155.6m to £130m - caused largely by the economic strife in the US.

The country accounts for more than 70% of sales and shareholders will be hoping for news on Tomkins' prospects for the rest of the year.

An update on the search for a new chief executive, particularly now the lengthy legal wrangle with former boss Greg Hutchings has been settled, is also likely to be of interest.