8th July 2014
The Share Centre has recommended investors buy Marks & Spencer despite a mixed set of results which saw food sales rise but clothing and online sales fall.
Sales at the website were down 8.1% in the quarter to 28 June. Like-for-like sales of non-food products, including clothing and homewares, fell 1.5% in the quarter.
The fall was offset by continued growth in M&S’s food sales, which increased 1.7% as the BBC reported.
Sheridan Admans, investment research manager at The Share Centre says: “Marks & Spencer saw its shares rise in early morning trading as the market took stock that its Q1 results were not as bad as feared. Teething problems due to the revamp of its e-commerce sales channel saw online sales fall 8.1% and general merchandise remained troubled.
“Despite headwinds, Marks & Spencer managed headline group sales, excluding VAT on a constant currency basis of 2.3%, supported by good food and international sales numbers. Marks & Spencer provided investors with some comfort by keeping full year guidance unchanged.
“We continue to believe that investors should hang on the coat tails of recovery at Marks & Spencer, as it tackles its problems in womenswear and general merchandise. Improving consumer confidence and recovering UK economy, led by domestic demand, should be supportive of results ahead.”