M&S’s results expected to deliver ‘solid sales progress’
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
In the key run-up to Christmas, bosses are set to announce a 7.1 per cent leap in clothing and home sales plus a 4.6 per cent rise in food sales. The half-year figures to the end of September come after M&S trailed resilient demand from customers returning to stores.
Its Christmas TV advert, reuniting Dawn French and Jennifer Saunders as Fairy and old toy Duckie, is likely to help to maintain momentum.
M&S has seen its shares slip as rocketing costs and pressure on households dented performance.
But Investec analysts expect bosses to highlight “solid sales progress” at the update on Wednesday.
The firm’s clothing arm – which has failed to be a hit for years – is the big news.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: “Investors are expecting a reasonable showing from clothing, where the group has made real strides online and in-store.”
However, profits are set to tumble as M&S covers the bills for higher property taxes and its exit from Russia. It previously warned the cost of quitting the warring nation could hit £31million.
In addition, M&S’s grocery venture with Ocado has sounded the alarm over slumping profits. Analysts now predict the high street giant will face a 22 per cent drop in pre-tax profits to £199million for the six months. Elsewhere, Primark-owning rival ABF delivers its full-year results on Tuesday – after a profits warning.
The group, which also owns grocery brands including Twinings and Ryvita, raised prices at Primark earlier this year but said it would stomach further higher costs. ABF is tipped to reveal sales were up 20 per cent to £16.7billion.
Susannah Streeter, of Hargreaves Lansdown, said: “Primark is not immune as customers tighten belts.”
Source: Read Full Article