Marks & Spencer share price: AJ Bell points to another red flag

AJ Bell reckons that the departure of Marks & Spencer Group’s (LON:MKS) finance chief marks the latest ‘red flag’ at the company, Citywire reports. The comments came after the high street retailer, which was recently booted out of the FTSE 100, announced yesterday that Humphrey Singer had decided to step down.

Marks & Spencer’s share price came under pressure in the previous session, giving up 3.24 percent to close at 189.50p. The group’s shares have extended their fall in early trade this morning, having given up 1.08 percent to 187.45p as of 08:10 BST.

AJ Bell weighs in on CFO departure

Citywire quoted AJ Bell analyst Russ Mould as commenting that M&S was “struggling to keep itself relevant in the modern retail world,” and the CFO’s departure only after a year suggested that there were “tensions in the boardroom as the retailer tries to sharpen its proposition”.

“Chief executive Steve Rowe has been fairly aggressive with plans to close underperforming stores and reshape the business, but his patience levels are clearly being tested given how Marks and Spencer’s profit is still falling,” Mould pointed out.

Clothing supply chain boss could exit

Industry publication Retail Week meanwhile reported yesterday that M&S’ director of supply chain and logistics for clothing and home, Gordon Mowat, is also set to leave the retailer after two years in the role. His departure is set to come after chief executive Steve Rowe took direct charge of the clothing business.

Retail Week further reports that Mowat will be succeeded on an interim basis by Stephen Fitzgerald, Rowe’s former executive assistant, who will take on an expanded supply chain role.

According to MarketBeat, the high street retailer currently has a consensus ‘hold’ rating, while the average target on the Marks & Spencer share price stands at 239.38p.