Analysts have predicted that Marks & Spencer (M&S) will be in for a tough 2009 and slashed their profit forecasts for the company, prompting shares in the retailer to drop close to an eight-year low.
Seymour Pierce said pre-tax profits at M&S for 2008-09 will be in the region of £725m to £675m, while Pali International said profits will be about £670m.
Pali retail analyst Nick Bubb said like-for-like sales at the retailer – due to be released on 4 November – could fall by 3% to 4% and even by as much as 6%.
He said: “With more downgrades and a dividend cut now on the horizon, we think M&S’s rating can crack further.”
M&S is also believed to be reviewing its advertising spend in the run-up to Christmas.
At the beginning of October, M&S reported that like-for-like food sales dipped by 5.9% in the 12 weeks until 27 September.
Today, it was revealed that Tesco is also budgeting for weaker sales growth as the economy heads towards a recession.
