Shares in Marks and Spencer were the biggest fallers among London’s leading stocks this morning (6 January) despite the retailer booking a rise in like-for-like sales – the first in two years.
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M&S shares were down 5.1% to 384.2p at 11:38 GMT as the market looked coldly upon the retailer’s trading update for the 13 weeks to 26 December.
The company’s UK like-for-like sales rose 0.8% during the 13 weeks – compared to a 7% fall in the comparable period last year. Like-for-like food sales inched up 0.4%, with general merchandise sales up 1.2%.
Group turnover was up 2.6%, while revenue generated outside the UK climbed 6%.
M&S’s numbers missed analyst expectations but the retailer was quick to point out that the figures did not include the first day of its Christmas sale on 27 December. The company said takings on that day would have boosted UK like-for-likes by 1%.
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By GlobalData“We had a good Christmas, continuing the improvements seen throughout 2009,” said chairman Sir Stuart Rose. “In food, we had our biggest-ever Christmas fortnight, with record one day sales of over GBP50m (US$79.9m) on 23 December.”
Sir Stuart, however, admitted trading would be challenging in the year ahead. “We expect the trading conditions over the coming year to remain challenging as a result of continuing economic uncertainty.
“We believe, however, that customers will continue to seek out real value and quality for which we are justly famous.”
