Tag Archives: Marc Bolland

Marks & Spencer Delivers Best-Ever Easter Week

By Sam Robson, The Motley Fool

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LONDON — Shares in Marks & Spencer  have risen 4% to 399 pence as of 8:50 a.m. EDT following the release of the high-street retailer’s trading statement for the fourth quarter, which saw the strongest quarterly sales growth in the last two years.

Group sales increased 3.1% year on year, with total U.K. sales averaging out at a 2.6% rise. Another strong performance from its food operations, which saw a 6.3% lift (helped by its biggest-ever Easter week), more than offset the 2.2% drop-off in general merchandise. It was a similar story for like-for-like sales in the U.K., which saw a marginal increase of 0.6% as food soared 4% and general merchandise fell 3.8%.

Chief executive Marc Bolland commented:

We are working hard on improving our performance in General Merchandise and, despite difficult trading conditions, we made progress in our operational execution. We delivered an excellent result in Food, with performance well ahead of the market, as customers continued to trust us for provenance and quality. We are increasingly seen as the destination shop for special occasions.

An increased push in multichannel sales saw a 22.9% rise in the operations year on year, helped by increased participation in M&S’ click-and-collect offer “Shop Your Way,” while mobile sales soared more than 70% compared with the same period last year thanks to an improved mobile-shopping experience implemented.

Elsewhere, international sales grew by 7% following a good performance by its franchise business in the Middle East, while key markets in India and China continued to trade strongly. Management also highlighted the performance of its European stores, stating, “Despite the macro-economic issues in some of the legacy markets, our performance in Europe improved in the quarter.” 

So Marks & Spencer appears to be making ground in its directive to become an international multichannel retailer despite the continued decline of its clothing operations. However, Bolland and the rest of the management team are addressing this with “selected tactical offers,” and they revealed in this morning’s update that customers are responding well to “better editing” of its spring and summer range. If they can return the general merchandise department to former glory, coupled with its excellent food division, then Marks & Spencer, on a prospective yield of 4.5%, might just return to prominence — both on the high street and in investors’ eyes.

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The article Marks & Spencer Delivers Best-Ever Easter Week originally appeared on Fool.com.


Sam Robson has no position in any stocks mentioned. The Motley Fool has no position in any of the

From: http://www.dailyfinance.com/2013/04/11/marks-spencer-delivers-best-ever-easter-week/

What You Were Selling Last Week: Marks & Spencer Group

By Jon Wallis, The Motley Fool

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LONDON — One of Warren Buffett‘s famous investing sayings is “be fearful when others are greedy and greedy when others are fearful” — or, in other words, sell when others are buying and buy when they’re selling.

But we might expect Foolish investors to know that, and looking at what Fools have been selling recently might well provide us with some ideas for investments that are past their prime.

So, in this series of articles, we’re going to look at what customers of The Motley Fool ShareDealing Service have been selling in the past week or so, and what might have made them decide to do so.

Share-price spike
The share price of Marks & Spencer  shot up 11% in the course of just a few days in the past fortnight, driven upwards by speculation of an 8 billion pound takeover bid lead by the state-owned Qatari Investment Authority. And a spot of quick profit-taking may have put the company in the No. 2 spot in the latest “Top 10 Sells” list.*

The former mainstay of the British high-street has been struggling in recent years, and its performance in the run-up to Christmas, over the final three months of 2012, was very disappointing. In a trading statement in early January it revealed that its like-for-like sales of clothing and general merchandise had dropped almost 4% and like-for-like food sales were flat (up just 0.3%), resulting in an overall fall in like-for-like sales of 1.8%.

On the brighter side, its multichannel sales — that’s online sales (including via mobile devices), home delivery, and collect-in-store — grew by almost 11%, and international sales increased by just over 4%. With its Chinese website having been launched this year, the company is obviously hoping for even greater growth in the months and years to come.

Even after the recent spike in share price, Marks & Spencer’s forward P/E of 12.2 remains well below the general retail sector average of almost 19. And its forecast yields of 4.3% for 2013 and 4.5% for 2014 should make it an attractive proposition for investors who like to get an above-average income from their shares.

But doing business on the high street has been tougher than ever in recent years, with no real end to the adverse U.K. market conditions in sight. Only recently the Centre for Retail Research forecast a “flat” 2013, and growth of less than 1.5% in 2014, with physical sales suffering as online business continues to expand. The difficult U.K. retail environment may well be why Marks & Spencer’s chief executive Marc Bolland expressed the intent to “transform Marks & Spencer from a traditional U.K. retailer to an international multi-channel retailer” in the January trading statement.

How long that transformation will take — indeed, whether it can be achieved at all — only time will tell. So perhaps some shareholders felt that they should realize a quick return on the back of the takeover speculation, putting Marks & Spencer near the …read more
Source: FULL ARTICLE at DailyFinance