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Marks & Spencer Group plc (MKS) Ordinary 25p

Sell:341.00p Buy:341.20p 0 Change: 4.50p (1.34%)
FTSE 100:0.46%
Market closed Prices as at close on 28 June 2017 Prices delayed by at least 15 minutes | Switch to live prices |
Ex-dividend
Sell:341.00p
Buy:341.20p
Change: 4.50p (1.34%)
Deal now Deal for just £11.95 per trade in a ISA, Lifetime ISA, SIPP or Fund & Share Account
Market closed Prices as at close on 28 June 2017 Prices delayed by at least 15 minutes | Switch to live prices |
Ex-dividend
Sell:341.00p
Buy:341.20p
Change: 4.50p (1.34%)
Market closed Prices as at close on 28 June 2017 Prices delayed by at least 15 minutes | Switch to live prices |
Ex-dividend
Deal now Deal for just £11.95 per trade in a ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

HL comment (24 May 2017)

Profit before tax for 2016/17 is down 64% to £176m, significantly impacted by the charges associated with closing the defined benefit pension scheme and the impact of international closures.

On an underlying basis, profits fell 10.3%, due to the expected decrease in Clothing & Home sales and the increased costs of new space, although the group has delivered a stronger gross margin than had been expected. The shares rose 2.2% after the announcement.

Full year results

Over the year, Clothing & Home revenues declined 2.8%, with like-for like sales down 3.4%. LFL sales fell 5.9% in the final quarter of the year, as the December sale and Easter both fell outside the period this year. Against a weak wider clothing market, M&S says its fourth quarter performance means its market share is now stabilising.

Gross margin was up c.105bps year-on-year, helped by a renegotiation of supplier contracts, and the decision to move business to lower duty locations. Margins were also boosted by a reduction in markdown activity, resulting in a 2.7% increase in full price sales.

In Food, like-for-like sales were down 2.1% in Q4, again impacted by the timing of Easter and the December sale. Gross margins dipped 0.25 percentage points, as a result of cost inflation.

Looking ahead, the group is set to open further Simply Food stores at a steady rate, with c.250 more stores planned by 2019/20. Cost inflation could impact margins by up to 0.5 percentage points next year.

M&S.com revenues increased by 4.9%, despite the removal of eight online cyber events.

While there is no repeat of recent special dividends this year, the ordinary full year dividend is held flat at 18.7p per share.

Unless otherwise stated, all estimated figures, including prospective dividend yields, are taken from a consensus of analyst forecasts compiled by Thomson Reuters. These estimates should not be taken as a reliable indicator of future performance.

Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Thomson Reuters. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.

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Deal now Deal for just £11.95 per trade in a ISA, Lifetime ISA, SIPP or Fund & Share Account

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