Friday preview: UK retail sales, Mondi update due

(Sharecast News) - On Friday's corporate calendar, a first-quarter trading update is due from paper and packaging group Mondi, while Swiss building materials group Holcim will also update on Q1. Interim results will be released by appliance maker Electrolux, and Q1 results from Swiss transport and logistics firm Kuehne+Nagel will also be in focus.

UBS said Electrolux heads into the first quarter with the set-up still challenging and, on its estimates, weak end demand and a large FX drag.

"Europe and the US remain soft, with weaker consumer confidence and subdued housing activity, while imports data suggest foreign inventory is still finding its way into the US market, keeping pricing pressure elevated in North America," it said.

"Brazil looks relatively more stable, but not enough to offset the tougher backdrop elsewhere. We expect limited pricing contribution in EAPMEA and North America given the still pressured competitive landscape, with North America again likely to be the main area of focus.

"We forecast group adjusted EBIT margin of 2.8% versus 1.4% in 1Q25, with North America still negative at -1.0% in our estimates given the lack of pricing pass through from competitors."

UBS said the key focus should be on whether pricing is starting to stabilise in North America, progress against the SEK3.5bn-4.0bn FY26 cost savings target, and any update on the impact of Iran disruption and higher oil on logistics, raw materials and demand through the remainder of the year.

As regards Kuehne+Nagel, UBS expects investors to mainly focus on the company's comments on the trading environment since the end of February in light of the turmoil that took place in the global freight forwarding markets since then.

"Moreover, we expect investors to be interested in the company's view on the potential duration of this current backdrop, the likely impact it can have on the company's profit prospects in 2Q26E, as well as the probability of the eventual demand destruction linked to higher energy prices for 2H26E," it said.

On the macro front, UK retail sales figures for March are due at 0700 BST, while the German Ifo index for April will be released at 0900 BST.

As far as the retail sales data is concerned, Michael Hewson at MCH Market Insights said: "Given recent events it's hard to be optimistic about what March might bring given the recent CBI survey showed an even steeper drop in sales, driven by the sharp rise in fuel prices, with many retailers expecting further weakness in April."

In the US, the Michigan consumer sentiment index for April is due at 1500 BST.