🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Marks & Spencer shares wilt 5% as it fails to deliver anticipated earnings upgrade

Published 11/01/2024, 12:01
Updated 11/01/2024, 14:45
© Reuters.  Marks & Spencer shares wilt 5% as it fails to deliver anticipated earnings upgrade
UK100
-
MKS
-

Proactive Investors - Shares in Marks and Spencer (LON:MKS) fell by around 5% to top the FTSE 100 losers' board in the wake of the retailer's trading statement that failed to deliver an upgrade to full-year earnings guidance.

Stock in the general lines and food retailer, down 12.9p at 264.8p, also succumbed to a bout of profit-taking. In the past year, Marks's stock has advanced 85%, catapulting it back into the blue-chip index.

Peel Hunt (LON:PEEL) said in its analysis shortly after the update and before the shares began trading: "The market was probably expecting an upgrade today, so shares may be slightly off, but the company continues to impress us and finished 2023 strongly."

Clive Black, the veteran retail sector analyst who is widely followed by professional investors and trusted by industry execs, was upbeat on M&S's performance during the run-up to and over the key Christmas period.

"A modernising M&S is reverting to the positive traits those of a certain age warmly remember," said the Shore Capital analyst. "Grounded management speaks to confidence that FY24 will be ‘consistent with market expectations'."

Underlying sales from the grocery section were up 9.9% for the 13 weeks ended 30 December.

However, keen students of Marks will know the clothing operation, still the mainstay of the business, tends to be the swing factor. It weighed in with like-for-like top-line growth of 4.8%.

Combined, the two delivered a like-for-like increase of 8.1%. Adding in the international operations, that figure came down to 7.2%.

Looking ahead, M&S said results for the year will be "consistent with market expectations". However, it also said economic growth remained "uncertain" while rising costs pushed by higher wages and business rates remained a concern.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.