The week ahead: Retailers to reveal just how chilly the climate is

Profits broke the £1 billion barrier for the first time in a decade in 2008, but the financial crisis and recession ushered in an era of fierce discounting on the high street.

M&S, which has more than 700 stores in the UK, is expected to report a 3 per cent fall in pre-tax profits to £694 million in the year to 31 March. However, sales in the growing overseas division are expected to stay above the £1bn level that M&S breached in the previous 12 months.

Like-for-like sales of general merchandise are expected to have fallen by about 1.7 per cent in the year, but food sales have put in a much stronger performance, with margins set to have grown slightly.

More details on the rescue plan for Mothercare’s UK operation will be unveiled on Thursday when new chief executive Simon Calver presents full-year results. Calver joined Mothercare at the end of April from internet movie rental company Lovefilm and is believed to endorse the transformation strategy announced by executive chairman Alan Parker last month.

Alongside a drive for more online business and continued overseas expansion, Parker revealed plans to cut the number of stores in the UK from 311 to a core 200 profitable outlets by 2015.

Panmure Gordon stockbrokers analyst Jean Roche said Mothercare’s annual profits were likely to have dwindled to £1.1m as competition rises from supermarkets, specialist chains and online retailers such as Amazon.

Luxury clothing brand Burberry is set to unveil profits up about a quarter, from £298m to £376m, when it reports interim results on Wednesday.

Burberry recently allayed fears that the slowdown in China would hurt its growth when it reported that sales from its retail estate rose 23 per cent to £743m in the six months to 31 March.

The City consensus for online fashion retailer ASOS is for the company post a 40 per cent rise in profits to £40.3m in the year to 31 March when it reports on Thursday. Profit margin improvements are said to be offsetting ASOS’s fashion clothing sales being hit by the poor spring weather.

The group disappointed markets when it said UK sales rose 4 per cent in the first three months of 2012, against 10 per cent in the previous quarter.

Booming demand for mobile internet access in the UK and strong growth in emerging markets has helped take the edge off depressed southern European markets that are still expected to see telecoms giant Vodafone’s full-year profits down when it reports tomorrow

It is thought Vodafone’s underlying profits will come in at £11.4bn, slightly down on last year’s £11.8bn. Last year’s figure was boosted by contributions from its stakes in French business SFR and in Polkomtel in Poland, both now sold.

Recently, Vodafone agreed a £1bn takeover of Cable & Wireless Worldwide, which will make it the UK’s second biggest telecoms operator.