Marks & Spencer: shares fall after in-line results

(CercleFinance.com) - Marks & Spencer shares are falling about 4% on Wednesday after the British retailer reported full-year results that are in line with analysts' expectations.


The company, which was founded over a century ago and which operates 1463 stores across 57 countries, said that sales at UK stores that have been open for at least a year fell 2% in the 52 weeks to 30 March.

M&S's like-for-like UK clothing and home sales fell 1.6%, while food sales were down 2.3%.

Financial performance was held back by operating challenges, the group said, with profit before tax and extraordinary items down 9.9%.

"Full-year results are in line but Marks & Spencer is still in the midst of a major restructuring with all the attendant costs and risks,' UBS analysts pointed out.

The group said its food business is showing good signs of progress in stemming the decline in like-for-like revenues.

M&S shares were down 4% at 260.5 pence, valuing the business at about 4.4 billion pounds.

The stock has risen by 5.5% year-to-date, although has underperformed the STOXX Europe 600 Optimised Retail index by 13%.

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