Rose faces battle as M&S announces 'weaker' results |
| Monday, 03 November 2008 | |||||
 Sir Stuart Rose will have to convince investors that he is the right man to take Marks & Spencer (M&S) forward through the economic downturn, with the company expected to announce underperforming results this week. Analysts have said that the retailer faces a very tough Christmas, and will be hit harder than other firms in the new year, reports the Independent. M&S is expected to reveal pre-tax profit until 30 September of £290m, down from £451m in 2007. Profit forecast for the full year until the end of March is set to be £667m, lower than its profits for the year until the end of this March. Standard & Poor's James Munro said: "The third quarter isn't the main worry. It's the next two quarters that are key. Christmas is going to be very tough for them." Credit Suisse analyst Tony Shiret added that M&S's weakening food sales are likely to impact on its overall figures. He said: "Matters are rather worse than when Sir Stuart arrived, in that the formerly dull but solid food business is now underperforming a robust retail food sector." Rose asked the Bank of England to cut interest rates last month, claiming that consumers need a confidence boost in the run-up to Christmas. M&S said like-for-like food sales dipped by 5.9% in the second quarter of the year. Will M&S be able to beat the prevailing economic climate and adapt to the difficulties? Make a comment below. Related Articles
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Kelly
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... The negative analyst at JP Morgan who was mentioned on Radio4's Today programme this morning, seems to forget that the high street has been in doom and gloom for the last few months. £290m profit can't be all that bad considering. Anyone interested in seeing what Stuart Rose has to say for himself should check out this video on www.cantos.com/marksandspencer |
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