Marks & Spencer share price rallies even as retailer's profits tumble

Marks & Spencer share price rallies even as retailer's profits tumble

Marks & Spencer share price rallies even as retailer's profits tumble

Shares in M&S have fallen 26% over the a year ago and the firm is in danger of being booted out of the FTSE 100 index.

Back in 2016, M&S embarked upon a five-year overhaul of its United Kingdom stores amid fierce competition from supermarkets and budget garment chain Primark - and particularly from online giants like Amazon.

M&S said clothing sales in stores that have been open more than one year tumbled 3.4% in the fourth quarter as trading was hit by the "beast from the east" cold snap.

Britain's Marks & Spencer on Wednesday reported a 5.4 percent fall in full-year profit, a second straight decline, hurt by a weakening in the food profit margin.

With core revenues being tightly regulated, there's not much scope for results of the water companies to stray too far from expectations, so upcoming changes to regulation are likely to be the focus when Severn Trent issues its finals. It is now worth less than both online grocer Ocado (OCDO.L) and online fashion website ASOS (ASOS.L), starkly illustrating how shopping habits have changed in only a decade.

Rowe, an M&S lifer who has been CEO for two years, said M&S was now tackling the structural issues it faces at pace.

Kate Ormrod, lead analyst at GlobalData, notes today's results - "as uninspiring as its clothing ranges" - once again emphasise M&S's reliance on its food business.

British department store retailer Marks & Spencer will close a further 40 stores in its home market as it struggles to improve its bottom line.

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"This is vital as we start to leverage the strength of the M&S brand and values across a family of businesses to deliver sustainable, profitable growth in three to five years".

After-tax profit meanwhile came in 74.8 percent lower at £29.1 million.

That was ahead of analysts' average forecast of 573 million pounds, but down from 613.8 million in 2016-17.

The WGC shop has avoided the list, but the company's pretax profits slump of 62 per cent to £66.8million has forced it to expand its store closure programme.

Turnover was broadly flat at 10.7 billion pounds.

FY profit slipped 74.8% to GBP29.1m (US$38.9m) from GBP115.7m a year earlier.

New Look has debts of more than £1bn and has lost some of its credit insurance cover, which protects suppliers if a retailer goes bust.

And Toys R Us, electricals group Maplin as well as drinks wholesaler Conviviality have all collapsed this year.

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