Companies reporting next week

RETAILERS will dominate the corporate arena next week with blue-chip firms including

M&S is expected to outline strategic changes for its clothing division - now headed by former Selfridges chief executive Vittorio Radice - in a trading update on Wednesday.

Analysts are not predicting a major improvement in sales in the fourth quarter after a poor performance over Christmas, with the M&S clothing division suffering from strong price cutting competition. Its food divisions should show low sales growth as the period does not include Easter.

According to fund manager Gerrard, M&S is likely to rely on benefits from its improved sourcing programme and cost-cutting to achieve profits forecasts for the year. Profits for the 12 months to March 31 are tipped to rise to £760m from £713.7m last year.

M&S warned earlier this month that up to 1,000 jobs could go following a review of its head office and financial services operations.

Analysts believe the performance of retailing and business services group GUS will have improved in the fourth quarter after like-for-like sales growth at Argos slowed to 3% in the previous three months.

GUS is expected to announce on Thursday that like-for-like sales at Argos have accelerated to 4%, although the trading update will not include figures for Homebase which generates a large slice of sales over Easter.

Credit checking arm Experian should deliver good figures, with the international division set to continue its trend of 7% sales growth. There should also be better news from the US, with a pick up in the mortgage re-financing market supporting the credit business.

Fashion brand Burberry generated retail sales growth of 11% in the third quarter and a trading update on Wednesday should reveal that this momentum has been maintained in the final months of its financial year.

Growth of more than 10% at constant exchange rates is expected across its retail, wholesale and licensing divisions compared with a year ago as core markets continue their recovery from a series of setbacks in early 2003.

Analysts will be looking for an improvement in trading in the UK after its previous update in January outlined a sluggish market for retailers, and the performance of its spring/summer collection will be key.

Higher sales at high street retailer Primark are set to boost Associated British Foods during the 24 weeks to February 28, with analysts expecting half-year profits of £227m compared with £216m a year ago.

The group is also expected to unveil good figures from British Sugar in its interim announcement on Wednesday after reaping the benefits of a slightly higher quota and the strong euro.

But results from US subsidiary ACH, which sells goods including corn syrup and starch to food manufacturers and restaurant chains, will be hurt by negative currency translation. Progress at its Australian operations may also have been neutralised by bakery closure costs.

Aggressive promotional activity by rivals has already been cited by sofa retailer DFS as a reason for falling orders over the key Christmas period and this will have an impact on its half-year results to be reported on Thursday.

The Doncaster-based group is expected to post pre-tax profits of £24m for the six months to January 31, against £26.1m a year ago.

However, the real focus of interest is the takeover bid by the group's executive chairman. Lord Kirkham has offered £445m for the chain he founded 35 years ago and it remains to be seen whether this has drawn out other bids.

Outfitter JJB Sports is expected to unveil annual pre-tax profits of £89.4m, up from £88.3m, when it updates investors on Wednesday.

Analysts are expecting upbeat news on the performance of the chain's health clubs, with new sites thought to be hitting membership targets quickly and prompting it to look for bigger outlets to accommodate new members.

Positive news is also expected on outlets in JJB's pipeline - it is believed the group could exceed its target of eight to 10 openings in the next 12 months.

Although like-for-like sales were down 3.5% in January, an increase in gross margins lifted like-for-like gross profits by 1% to 1.5%, and analysts expect this trend to be maintained.