M&S misses LFL forecasts in third quarter
High Street giant Marks & Spencer has reported worse-than-expected sales figures for the key Christmas period in a trading update that was partially leaked the night before.
High Street giant Marks & Spencer has reported worse-than-expected sales figures for the key Christmas period in a trading update that was partially leaked the night before.
After like-for-like (LFL) sales data was leaked to Sky News wrongfully at around 20:00 on Wednesday evening - the update was scheduled for release on Thursday morning - the retailer was forced to rush out its figures and convene a management conference call, according to media reports.
For the group's third quarter, the 13-week period to December 29th 2012, group sales at a constant exchange rate grew by just 0.6%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
However, LFL sales in the UK dropped by 1.8%, worse than the 1.4% decline expected by Nomura, owing to weaker-than-forecast Food and General Merchandise (GM) performance.
Despite Food reporting record sales of nearly £330m in the two key Christmas trading weeks, outperforming the market by 4%, third-quarter Food LFL sales rose just 0.3%, lower than the +0.5% Nomura estimate.
GM LFL sales fell 3.8%, worse than the forecast decline of 3.5%.
Gloomy outlookThe company said that the pressure on consumers' disposable incomes is likely to continue in 2013.
"As a result we remain cautious about the outlook for the year ahead," the press release said.
While the firm said that its GM performance "is not yet satisfactory", Chief Executive Marc Bolland said that he is "confident that the steps being taken by the new management team will address this."
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
US election: Trump is back - what does it mean for your money?
Trump is back, but what does his election victory mean for your money and which stocks are tipped to do well?
By Kalpana Fitzpatrick Published
-
M&S smashes profit expectations on the back of strong food sales
Marks & Spencer’s half-year profits rose 17.2% to £407.8 million, well ahead of the £359 million analysts were forecasting
By Chris Newlands Published