The updated target price implies a potential downside of -0.17% based on the company’s most recent stock close price.
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Even like-for-like sales in the group’s better-performing food business dropped 0.9%. Worldwide sales rose 6.1 percent on a reported basis, and were up 0.7 percent at constant currency. The Company has over 798 stores across the United Kingdom in high streets and retail parks, as well as stations, airports and other locations ranging from out-of-town and flagship stores of over 100, 000 square feet, to Simply Food stores of around 7, and 000 square feet.
Clothing & Home sales, meanwhile, declined 8.3 percent on a reported basis, and 8.9 percent on a like-for-like basis.
Mr Rowe said they were “not the numbers I want to see” for first quarter trading, but added they were “the numbers I expected to see” after the group axed 28 promotions under a plan to instead lower every day prices.
Marks & Spencer blamed the heavy tumble in clothing sales on its decision to delay its summer sales until the start of this week, despite many of its rivals choosing to go on promotion earlier to shift summer stock that had proven hard to sell during a wet June.
M&S chief executive Steve Rowe said this dip was to be expected, given the company’s plans to improve the clothing division’s fortunes, including a reduced number of promotional events during the quarter.
Firm bosses blamed a “weak market” as consumer confidence was hit ahead of the European Union referendum, as well as moves to cut promotions and shift its summer sale into July.
M&S also said that this year its summer sale began on 5 July, two weeks later than in 2015, a move that would reduce total sales.
He said: ‘Rowe’s first full quarter in charge of M&S has been challenging to say the least. Marks & Spencer Group’s market capitalization is now GBX4.8B.
New Chief Executive expressed his disappointment with the results but said the firm was “confident that our strategic priorities and the actions we are taking remain the right ones to deliver results for our customers and our business”.
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Yesterday Marks & Spencer Group (LON:MKS) traded 1.84% lower at GBX302.40.
