M&S: share up as FY earnings expected to rise
(CercleFinance.com) - Marks and Spencer has said that it expected its annual profit to rise, boosted by both the sound progress of its turnaround plan, but also by market share gains across the board.
CP almost +8%.
The British retailer said that food sales had risen by over 11% LFL in the first 19 weeks of its financial year, well ahead of analysts' expectations at RBC (+8%).
The group justifies the strength of its business by the price cuts it made on more than 80 essential products (eggs, milk, meat, bread, pasta, vegetables, etc.).
Non-food sales in stores open for at least a year rose by 6% over the 19 weeks to 12 August, again outperforming RBC forecasts (+3.5%).
M&S also stressed that its operating margin remained "robust", despite the "considerable" uncertainties surrounding the current economic outlook.
It says, however that there is a risk that consumers will reduce their spending in the coming months.
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