Companies Reporting: Compass, Burberry, Alibaba, TUI

Our regular look at the company diary for FTSE 350 and beyond from 12 – 16 May.

• Will Compass’s sales growth be pointing in the right direction?
• Investors brace for difficult times at Burberry
• Alibaba eyes growth amid AI surge and trade tensions
• TUI looking to stay on course despite economic crosswind

Compass Group, Half Year Results, Wednesday 14 May

Derren Nathan, head of equity analysis, Hargreaves Lansdown: Contract caterer Compass Group’s LON:CPG underlying sales growth of 9.2% in the first quarter wasn’t enough to prompt a full-year upgrade from management. Current guidance is looking for organic sales growth of at least 7.5% in 2025 and underlying operating profit in the high single digits. With consensus forecasts already wandering into double-digit growth territory, there may be some disappointment if Compass doesn’t serve up an upgrade alongside next week’s half-year results.

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Now that the £0.5bn buyback is complete, investor appetite may have been whetted for more of the same, so investors will be keeping an eye out for an update on shareholder payouts as well as progress on the integration of CH&Co acquired last year for £0.5bn. Investors will be hoping for signs of continued momentum in next week’s interim results.

Burberry, Full Year Results, Wednesday 14 May

Susannah Streeter, head of money and markets, Hargreaves Lansdown: It’s been a torrid year for Burberry LON:BRBY and, although third quarter sales didn’t fall by as much as feared, investors are likely to be bracing for warnings of more difficult times to come. The financial year for the fashion house ended before President Trump unleashed his Liberation Day plan onto the world, and the China/US trade war ramped up. Given that China has been the powerhouse for luxury brands, another knock to confidence in the vast country is likely to hurt Burberry, which had shown signs of turning around its sales performance in the Asia Pacific region.

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The American market is also likely to be more difficult, with blanket tariffs set to increase costs for US consumers. This had been a brighter spot for Burberry, with like-for-like revenue rising 4% at the last count, so a knock in confidence will be a set-back. Although the ultra-wealthy will be more insulated, Burberry is more in the mid-market in terms of its luxury tag, so won’t escape the fall out. However, there were signs that the refreshed strategy under CEO, Joshua Shulman, had been helping to revive overall sales and fashionistas interest in the brand. If this strategy shift continues in the right direction, with a refocus on its famous raincoats and outerwear, it could help Burberry weather the tariff storm more easily.

Tui, Q2 Results, Wednesday 14 May

Aarin Chiekrie, equity analyst, Hargreaves Lansdown: TUI [LON:TUI] had a blockbuster first quarter, with revenue rising at double-digit rates and profits landing well ahead of market expectations at the time. The Holiday Experiences division drove the improvements, with particularly strong performances across its Hotels & Resorts and Cruises.

• Companies Reporting: Ashtead, Currys, TUI
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Operating in a sector which is at the mercy of consumer sentiment and spending power is difficult. The current challenging economic backdrop means it’s hard to map the demand picture accurately. Concerns around weaker bookings have caused markets to expect revenue growth to roughly half quarter-on-quarter, to 6.4%.

But falling oil prices have the potential to keep profits moving higher, given they’re such a significant chunk of airlines’ costs. And analysts expect to hear that full-year underlying operating profit guidance of 7-10% growth remains on track when second-quarter results are announced next week.

Alibaba, Full Year Results, Thursday 15 May

Derren Nathan: Alibaba NYSE:BABA delivered robust revenue growth and made notable progress in expanding its emerging AI and cloud infrastructure division last quarter, which has become central to its growth strategy.

• Companies Reporting: HSBC, Alibaba, Lloyds
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Analysts are forecasting revenue growth of approximately 6.2% year over year for 2025. While the focus on AI and cloud is making the headlines, most revenue still comes from e-commerce, making Chinese consumer demand crucial. Despite trade tensions raising concerns about Alibaba’s international businesses, such as AliExpress, direct exposure to US tariffs is limited, as most sales are concentrated in China.

Ongoing macroeconomic uncertainties in China will remain important factors shaping investor confidence in the year ahead. The main question now is whether momentum can be sustained both in the next quarter and over the coming year.

This article has been brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.

FTSE 100, FTSE 250 and selected other companies scheduled to report