Hargreaves Lansdown

Marks & Spencer second quarter sales to fall, Deutsche maintains 'hold'

Fri 06 October 2017 16:49 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(ShareCast News) - Marks & Spencer will report a fall in second quarter sales, Deutsche Bank forecast on Friday ahead of the retailer's half-year results on 8 November.

UK like-for-like sales will decline 0.7% and underlying pre-tax profit will fall 12% reflecting a mixed performance in an increasingly challenging UK market, the bank said.

Market share gains in food have faded, while the need to reintroduce promotions is likely to have weighed on margins, analysts reckoned.

In the clothing segment, full price share are seen swinging back into losses while total sales continue to be held back by the reduction in promotion and clearance volumes.

"One positive trend should be International where closure of loss-making countries and translational movements should drive a material boost."

But full year forecasts were mostly unchanged and a 'hold' recommendation was maintained, with a 345p share price target.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More stockbroker tips from ShareCast

    Latest economy and stock market articles