Better marks for Marks & Spencer
M&S results were bad, but not as bad as the City had expected. But conditions on the high street aren't getting any easier for retailers.
It was bad, but not as bad as the City had expected. Marks and Spencer said yesterday underlying sales fell just 4.2% in the last three months. Bloomberg's analyst survey had forecast a 6.8% revenue slide, so it was no surprise that the shares rang up a 12% gain on the news. Further, the trading update "has given Sir Stuart Rose some much-needed breathing space after a spate of shareholder sniping over corporate governance", said the FT's Andrea Felsted and Kate Burgess.
The group "was able to announce it had been swimming against the recessionary tide rather more strongly than anyone thought", said Jeremy Warner in The Independent. M&S "seems to be getting a grip once more" with the new Portfolio womenswear range, and the "dine-in" food promotions are a step in the right direction.
The outlook for M&S
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
