M&S Shares Rise While Sales Drop
Published By : 06 Nov 2014 | Published By : QYRESEARCH
Marks and Spencer shares have increased by almost 10 percent. This rise is despite the fact that the company is experiencing a quarterly fall in sales, its 13th consecutive one. The company has blamed it on unseasonal conditions in September.
The retailer, which is now more than 130 years old, reported that like-for-like general merchandise sales dropped 4 percent in the second quarter.
Marc Bolland, the CEO of Marks and Spencer, said that despite the sales figures, he was pleased with the progress.
Experts believe the current boost could point to a start of a turnaround for the company.
Neil Saunders, the Conlumino MD, said that glimmers of hope are beginning to shine through the surface as the firm’s strategies are starting to pay off.
Experts have also stated a rise in the closely monitored city measure, which showed improvements beyond expectations, along with an increase in the dividend in conjunction with the sharp share rate increase. The city measure is the margin at which Marks and Spencer sells its clothing.
Online sales were down 4.6 percent in the second quarter, after the site was renovated and re-launched in February. This was still an improvement considering an 8.1 percent drop in the previous quarter.
Marks and Spencer’s performance was better than what analysts had predicted. A 0.4 percent drop in half year pre-tax profits to £279.4m, although there was a 2.3 percent increase in the underlying profits to £267.6m, which experts considered to be above expectations.
M&S also said sales of women’s wear were up 1.3 percent in the first five months of the year.