Marks & Spencer share price subdued ahead of group’s full-year results

on May 23, 2017
Updated: Oct 21, 2019

Shares in Marks & Spencer Group (LON:MKS) have been subdued today, with investors awaiting the company’s full-year results tomorrow. The high street retailer is expected to unveil a fresh slump in clothing sales, as well as a fall in annual profits as chief executive Steve Rowe continues his restructuring of the company.

As of 10:23 BST, Marks & Spencer’s share price had lost 1.11 percent to 391.10p, underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.16 percent higher at 7,508.18 points. The group’s shares have lost more than 11 percent of their value over the past year, but are up by some 11 percent in the year-to-date.
Marks & Spencer is scheduled to post its full-year results tomorrow and the Guardian reports that Investec analyst Kate Calvert has pencilled in pre-tax profits of £603 million for the year ended March 31, down from £690 million in the prior-year period.

“M&S is playing catch up in a difficult mid-market position,” Calvert pointed out, adding that the collapse in the value of the pound since the Brexit vote would add to the pressures faced by management this year as the cost of imported goods rises. The newspaper further notes that the group’s clothing and homewares sales meanwhile are expected to have fallen more than three percent in the first three months of 2017.

The results will come as Steve Rowe looks to turn around the group’s fortunes by restructuring the blue-chip retailer and reviving its underperforming clothing business. Earlier this month, the FTSE 100 group appointed Archie Norman, best known for turning around Asda, as its new chairman.
The 24 analysts offering 12-month price targets for M&S for the Financial Times have a median target of 327.50p on the shares, with a high estimate of 500.00p and a low estimate of 250.00p. As of May 19, the consensus forecast amongst 25 polled investment analysts covering the blue-chip retailer advises investors to hold their position in the company.
As of 10:44 BST, Tuesday, 23 May, Marks and Spencer Group Plc share price is 390.40p.

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