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07 November 2018

Marks and Spencer fights to regain spark

Challenging times lie ahead for Marks and Spencer following a tough summer season which saw a fall in clothing and food sales.

The High Street stalwart saw pre-tax profits rise 7.1% to £126.7m in the six months to 29th September 2018 as a result of cost-cutting measures. However, total sales were down just over 3% during this period, with food revenues down 0.2% and clothing and home revenues down 2.7%.

In order to maintain its cost-cutting programme, the retailer announced it planned to close around 100 stores by 2022.

Roy Kaitcer, Investment Manager at investment management and stockbroking firm Redmayne Bentley, said: “Trading conditions for them are still very tough. Investors will be hoping to see an improved performance in their clothing range, which is up against competition from online retailers such as boohoo.com and ASOS. M&S food sales have always held up well in the past, but the market is now becoming increasingly competitive for them.

“It will be interesting to see how M&S fares during the key Christmas period, which is likely to be a challenging time for the store this year, as it is across the retail sector.”

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Notes to Editors

Redmayne Bentley has a full range of services, from investment management services suitable for different life stages, through to traditional stockbroking, dealing with advice and tax-efficient investments.
Please note, investments and income arising from them can fall as well as rise in value and you may lose some or all of the amount you have invested. Our view does not constitute a recommendation to buy or sell the shares of Marks and Spencer.
 


 
Marks and Spencer fights to regain spark
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