Next week on the stock market

Despite some disappointments throughout the year, JD Sports delivered a strong final quarter, with sales up across all regions. The group’s been holding firmer on price than many of its competitors, who have leaned into promotional activity to help clear stock. The acquisition of Hibbett means that the US is now the group’s largest region by sales. But with rising costs due to tariffs, this extra inventory in the US could turn out to be beneficial for the group, providing a bit of a cushion to ride out the near-term uncertainty.

The outlook for the UK is fairly bleak. Management has voiced concerns that recent changes to National Insurance and minimum wages could increase costs by £30mn. As a result, the group’s expecting to report pre-tax profits in the £915-935mn range when full-year results are announced next week.

easyJet will be looking to show markets it’s on the right flight path when it announces half-year results next week. There had been talk of weaker pricing over the second quarter, and we’re keen to hear how much of an impact that’s had on the bottom line. Markets are forecasting first-half pre-tax losses to widen nearly 5% to £366mn.

First-half losses aren’t surprising given the cyclical nature of easyJet’s business. Much more important is commentary around the outlook for the important summer season. Falling oil prices have the potential to boost profits, given they’re such a significant chunk of airlines’ costs. But we’re also keen to hear just how much of an impact uncertainty around tariffs is having on bookings and business, and if plans to expand its capacity by 3% this year remain on track.

Greggs has had a tough time of late, with the valuation coming under pressure in 2025 as the group flagged slowing sales growth and rising costs. Bad weather has been partly to blame, putting off some customers that Greggs’ conveniently located stores would lure in. Trends were improving in February and we’re cautiously optimistic that the second half of the year will bring some more favourable conditions.

We don’t expect to hear a change of tack from management in next week’s trading update. Greggs has plans for between 140-150 net new openings in 2025, and we’re keen to hear how fast these new stores are being rolled out. Slowing sales growth and a tricky cost environment are challenges that Greggs now needs to overcome, but we’re not seeing any reason to be concerned about its underlying strengths just yet.