M&S: better-than-expected Christmas sales, targets maintained

(CercleFinance.com) - On Thursday Marks & Spencer reported a better-than-expected Q3 sales growth, over the Christmas period, with it confirming its targets for FY 2023/2024.


M&S, one of Britain's most iconic retailers, announced LFL sales growth of 8.1% in the 13 weeks to 30 December.

This exceeds RBC analysts' forecast of +7.5%.

Like-for-like sales in the clothing and home products division rose by 4.8%, more than the 4% increase RBC had anticipated.

In food, sales rose by 9.9%, again better than expected, as RBC was targeting +9.5%.

Although M&S was cautious, citing an uncertain economic outlook, cost pressures and wage increases, it nevertheless maintained its forecasts for its full financial year to end-March.

On the London Stock Exchange, M&S shares were down over 5% in mid-morning trading, clearly underperforming the FTSE 100 index, which was up by 0.1%.

In their reaction note, analysts at RBC highlighted the group's disappointing international performance, with sales falling by a heavier-than-expected 6.4% in Q3.


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