Investor fires warning shot at Marks and Spencer boss
One of the biggest investors in Marks and Spencer has warned that boss Marc Boland has until the autumn to sort the company out before investors lose patience.
One of the biggest investors in Marks and Spencer has warned that boss Marc Boland has until the autumn to sort the company out before investors lose patience.
The company recently reported that sales of general merchandise, which includes clothing, fell 3.8% fall in its last quarter.
David Cumming, head of UK Equities at Standard Life Investments, the group's 10th largest shareholder with 1.6% of its stock, said Bolland had between six and nine months to sort out clothing if he wanted to keep his job.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
He told the BBC's Today Programme M&S had made progress in areas like logistics but the key issue was general merchandise, in particular clothing.
'We're not comfortable with the progress here - they have made management changes but they are a bit late," Cumming said.
"[Boland] has to get his autumn range right, that's when the management changes that he's made will have an impact.
"I think the market will wait to see how that range, which doesn't really come through until six to nine months, is going to work. If that is poor then he'll be under a lot of pressure," he said.
Cummings said the market was willing to wait because the M&S' difficulties were already priced into its shares and the group could still be vulnerable to a bid from private equity.
"So us and the market will wait but he is under pressure," Cumming warned.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
What does a weak yen mean for Japanese stocks?
The Japanese yen has hit its lowest level against the US Dollar since 1986. What does it mean for its stock market?
By Alex Rankine Published
-
Nationwide cuts mortgage rates as they dip below 4% for first time since February
The building society’s cheapest deal is now priced at 3.99%. Whether you’re buying or remortgaging, we look at whether rates could drop further in the coming months
By Ruth Emery Published