The Tipster | Inditex is banking on its strong brands

ALTHOUGH its third-quarter numbers disappointed traders in December, Inditex, the Spanish owner of Zara and Massimo Dutti, did report higher net income. Nevertheless, traders still expect the fashionable retailer to report soft like-for-like sales when it delivers its full year figures tomorrow, which may weigh on the company’s share price. However, its global portfolio shields Inditex from the economic woes in its home market Spain. It has added 360 retail units in 54 different markets in the last year, putting the company in a strong position to compete with the likes of H&M. ETX Capital quotes a price of €107.05-€107.15.

Thursday’s trading announcement from Home Retail Group may help to put a spring back into the retailer’s share price. Although shares are up by over 26 per cent over the last year, they have been flat in 2013. But the strong online presence of Argos, one of the UK’s most popular retail websites, is a strength that puts the Home Retail Group in a solid position to capitalise on a turnaround in the UK’s retail environment. IG quotes a price of 128p-129p for Home Retail Group.

WM Morrison Supermarkets’ weak online presence, and poor expansion of its supermarket stores has brought about fierce criticism from investors. Poor sales over the Christmas period highlighted this gaping hole in its business model. The company has since acted, and recent failures elsewhere in the retail sector have enabled the firm to buy up smaller properties in prime locations. Although the impact of this will take some time to filter through into revenue growth, any guidance that the supermarket chain can offer investors will likely be met with cheer when it reports its final numbers on Thursday. GFT Markets quotes a price of 266.13p-266.87p for WM Morrison Supermarkets.