Marks & Spencer share price: what’s the latest ahead of its half-year results
The British retailer unveils its half-year earnings next week, but with sales across its core divisions declining analysts are expecting the company to announce a slump in profits.
Marks & Spencer (M&S) faces an uphill battle, with the retailer plagued by tough trading conditions that have seen its revenues decline 3% to £10.4 billion and pre-tax profit fall by 9.9% to £523.3 million last year.
Next week, the British retailer will unveil its half-year results, but with sales continuing to fall across its core divisions like clothing and home, analysts are expecting its profits to take another hit.
Tony Shiret a stockbroker at Whitman Howard told This is Money that profit before exceptional costs is expected to fall to £185million in the six months to the end of September, down from £224 million in the same period last year.
‘[M&S] has had nearly £1.5billion of exceptional charges in the last three years. There will be more.’ he added. ‘Its accounts have become a bit of a farce to be honest.’
Looking to trade M&S and other retail stocks? Open a live or demo account with IG
M&S shares continue to slide
The British retailer’s ailing sales are reflected in its share price, with the stock down 25% since the beginning of the year, trading at 175p as of 12:25 GMT on Friday.
Sales in its core clothing and home divisions have been hit hard by increasing online competition and high operating costs associated with maintaining a physical presence on the high street.
M&S chairman Archie Norman admitted that it will take many years to turn the company around and address the shift in consumer preference towards online shopping.
However, the company has taken steps to attract more customers in the build up to Christmas, with the retailer launching a ‘buy now, pay later’ service in November. The service, which M&S created with the help of Australian firm Clearpay, aims to attract younger customers and boost trade during the holiday season.
You can go long or short M&S with IG using derivatives like CFDs.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
