The first full trading week of 2025 brings crucial trading updates from several prominent companies, setting the stage for the upcoming earnings season. Investors will be keenly analyzing these reports for insights into market trends and individual company performance. This week, updates from energy giants, retail stalwarts, and pharmaceutical leaders will be in the spotlight.
Table Content:
- Shell (SHEL.L) – Q4 Trading Update (Wednesday, January 8th)
- Walgreens Boots Alliance (WBA) – Q1 Earnings Report (Friday, January 10th)
- Marks & Spencer (MKS.L) – Christmas Trading Update (Thursday, January 9th)
- Greggs (GRG.L) – Q4 Trading Update (Thursday, January 9th)
- Conclusion: Navigating the First Week of Trading
Shell’s trading update will provide a critical look at the company’s performance amidst weakening oil demand. Simultaneously, Walgreens Boots Alliance’s earnings will be closely scrutinized following recent speculation about a potential private equity buyout. In the UK, Marks & Spencer’s Christmas trading update will offer a pulse check on consumer spending during the crucial holiday season. Finally, investors will be eager to see if bakery chain Greggs maintained its strong sales momentum in the final quarter.
Shell (SHEL.L) – Q4 Trading Update (Wednesday, January 8th)
Shell’s fourth-quarter trading update, preceding its full results release at the end of January, will offer insights into the company’s performance. The third quarter saw a slight profit dip to $6 billion (£4.83 billion), although this still exceeded market expectations. Factors contributing to this decline included weaker refining margins, lower realized oil prices, and increased operating expenses.
The global oil market faces pressure from reduced demand, exacerbated by geopolitical tensions in the Middle East and economic slowdown in China, a major crude oil importer. The International Energy Agency forecasts a potential oil surplus in 2025, despite OPEC+ extending supply cuts. This surplus could lead to lower oil prices, potentially impacting Shell’s profitability. Investors will be particularly interested in whether Shell will announce another share buyback program, following the $3.5 billion repurchase program announced in its Q3 results.
Walgreens Boots Alliance (WBA) – Q1 Earnings Report (Friday, January 10th)
Walgreens Boots Alliance concluded 2024 as the S&P 500’s worst performer, with its shares plummeting 64%. The stock has reached its lowest point in nearly three decades, reflecting challenges in the pharmaceutical sector, including competition from online prescription delivery platforms. The company’s fourth-quarter results revealed a loss of $3.48 per share, a significant decline compared to the $0.21 profit reported for the same period in 2023.
Walgreens’ full-year loss per share widened to $10.01, despite a 6% increase in sales to $147.7 billion. The company also announced plans to close approximately 1,200 stores over three years, with 500 closures anticipated in the 2025 fiscal year. December saw a brief surge in Walgreens’ share price following reports of potential private equity buyout talks. Such a deal could potentially trigger a separate auction for the UK-based Boots chain. Looking ahead, Walgreens projects earnings per share of $1.40 to $1.80 for the 2025 fiscal year, anticipating growth in its US healthcare and international segments to offset a decline in US retail pharmacy.
Marks & Spencer (MKS.L) – Christmas Trading Update (Thursday, January 9th)
Marks & Spencer’s Christmas trading update will be highly anticipated following a year of strong performance. The holiday season is crucial for retailers, and investors will be scrutinizing M&S’s results for signs of continued momentum. The company’s shares are currently at their highest level since 2016, buoyed by a 35% increase in profit after tax to £278.6 million in its first-half results.
First-half sales also saw a nearly 6% rise to £6.5 billion. While CEO Stuart Machin may refrain from providing specific guidance on full-year sales and profits, current market consensus anticipates a 5% increase in total group sales to £13.7 billion and adjusted pre-tax income of £830 million, compared to £716 million in the previous year. This update follows data from the British Retail Consortium indicating a 2.2% decline in UK high street footfall in December, potentially raising concerns about retailers’ holiday performance.
Greggs (GRG.L) – Q4 Trading Update (Thursday, January 9th)
Greggs’ share price has been under pressure since its October third-quarter trading update. While like-for-like sales in company-managed shops increased by 5% in the third quarter, this represented a slowdown compared to the 7.4% growth recorded in the first half. Despite this, Greggs maintained its full-year outlook, aligning with previous expectations.
Market analysts predict headline revenue growth exceeding 12% for the year, potentially pushing annual revenue beyond the £2 billion ($2.48 billion) mark. Greggs has made significant strides in key growth initiatives, including new delivery partnerships, menu enhancements, and extended operating hours. While these strategies are expected to further contribute in the coming year, potential tax changes in the UK budget could pose challenges by adding significant costs.
Conclusion: Navigating the First Week of Trading
The first trading week of 2025 presents a crucial opportunity for investors to gain insights into the performance of key companies across various sectors. From energy to retail and pharmaceuticals, these updates will provide valuable context for understanding market trends and shaping investment strategies for the year ahead. Stay informed and analyze these reports carefully to navigate the complexities of the evolving financial landscape.