Tag Archives: Marks Spencer

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.

If you are looking for alternative opportunities in the FTSE 100, this exclusive wealth report reviews five particularly attractive possibilities. Indeed, all five blue chips offer a mix of robust prospects, illustrious histories, and dependable dividends, and they have just been declared by The Motley Fool as “5 Shares You Can Retire On.” Simply click here for the report — it’s completely free!

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/

Why Mothercare, WH Smith, and PZ Cussons Should Beat the FTSE 100 Today

By Alan Oscroft, The Motley Fool

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LONDON — The FTSE 100 continues its slow recovery, having put on another 0.21% to reach 6,401 points by 8 a.m. EDT. The blue-chip index has been boosted by a 3% rise in the Marks & Spencer price after the retail chain reported its best-ever Easter Week for food. But on the downside, a number of our largest miners have begun to slip after a good couple of days.

But what of companies in the news? Here are three from the various indexes that are looking good today.

Mothercare
Mothercare shares have leapt 7.2% to 313 pence after the firm told us its U.K. store closure plan is ahead of schedule and sales have stabilized in its fourth quarter. While like-for-like sales are flat, the firm’s Direct Internet business saw an 18.2% rise in sales, prompting chief executive Simon Calver to say, “We can look ahead to the new year with confidence.”

With international sales rising by 15.5% during Q4 and the firm’s focus firmly on cash gross margin, Mothercare was able to confirm that underlying pre-tax profit for the full year is in line with market expectations.

WH Smith
Another High Street name is doing well today: Shares in WH Smith have climbed 3.8% to 773.5 pence on the release of interim figures. Total pre-tax profit for the group is up 5% for the six months to Feb. 28 to 69 million pounds. That led to bottom line earnings-per-share growth of 11% to 44.2 pence, enabling the company to lift its interim dividend by 13% to 9.4 pence per share.

The strong performance came from Smith’s two divisions: Travel saw a 7% rise in trading profit to 29 million pounds, while the equivalent High Street figure gained 2% to 48 million pounds.

PZ Cuzzons
Maker of toiletries and other household products PZ Cussons saw its shares rise 1.8% to 394 pence after the firm released an interim management statement. For the quarter to April 10, performance, including cash generation, was in line with management expectations.

Business is tough in some of the company’s markets, with its largest, Nigeria, facing social and political unrest. But the firm still believes the rest of the year should go according to expectations, and it should return to profitable growth.

Finally, if you’re looking for investments that should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits. But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.

The article Why Mothercare, WH Smith, and PZ Cussons Should Beat the FTSE 100 Today originally appeared on Fool.com.


Alan

From: http://www.dailyfinance.com/2013/04/11/why-mothercare-wh-smith-and-pz-cussons-should-beat/

What Might a Marks & Spencer Group Takeover Mean for the Market?

By Owain Bennallack, The Motley Fool

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LONDON — In this Foolish video, Andy Paul and Owain Bennallack take a look at Marks & Spencer  following reports of move to take the retailer private by the state-owned Qatar Investment Authority. Andy and Owain examine what a potential takeover could mean for other companies.

If you already hold M&S shares and are looking for other buying opportunities, this new wealth report identifies five FTSE names that should provide you with a comfortable retirement. Just click here for details.

link

The article What Might a Marks & Spencer Group Takeover Mean for the Market? originally appeared on Fool.com.


Neither Owain nor Andy own shares in Marks & Spencer. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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What You Were Selling Last Week: Marks &amp; 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

Should You Buy Marks &amp; Spencer Today?

By Royston Wild, The Motley Fool

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LONDON — Shares in beleaguered British retailer Marks & Spencer Group have shot higher in recent days, fueled by speculation that the Qatari Investment Authority is concocting an 8 billion pound takeover bid for the shopping chain.

The company has become an enduring casualty of the troubled domestic retail environment, but I am backing the iconic shopping brand’s drive into emerging markets to reinvigorate its fortunes and offset enduring weakness in the U.K. and Western Europe.

International expansion to fuel future growth
The retailer’s January interims revealed that group sales trudged just 0.6% higher in the three months to the end of December, with U.K. revenue edging 0.3% higher during the period. British like-for-like sales dropped 1.8%, meanwhile, and the firm warned of further toughness in the retail environment at home.

To address this ongoing weakness, Marks & Spencer is aiming to boost its operations in countries with strong structural drivers across Asia, the Middle East, and Eastern Europe. For example, it is planning to hike the number of stores in India from 30 to 80 within the next three years, while in China it aims to boost the number of its stores in Hong Kong and Shanghai in the near term.

And the company plans to use a multichannel approach to geographical expansion, including the establishment of franchise stores with strong partners, which will harness both local knowledge and infrastructure to spark growth. Marks & Spencer is also looking to aggressively tap into online trade in these regions, and it launched its local website in China at the start of the year.

Looking good for earnings turnaround
According to broker forecasts, earnings per share are expected to dip 7% to 32 pence in the year ending March 2013 before reverting 7% higher during the following year to 35 pence. And an 8% rise to 37 pence is penciled in for 2015.

Despite the recent share-price ascent, the retailer still trades at a significant discount to the broader retailers sector’s forward earnings multiple of 18.7. Shares in Marks & Spencer currently change hands on a P/E of 12.1 for 2013, and this is anticipated to fall to 11.3 and 10.5, respectively, in 2014 and 2015.

Get used to great dividends
Marks & Spencer’s investment appeal is bolstered by a sound dividend policy. City analysts expect a shareholder payout of 17 pence per share for March 2013 — which would match the dividends of 2011 and 2012 — to rise to 17.8 pence in 2014 and 19 pence in 2015. These payments come with respective yields of 4.8% and 5.1%, besting the mean reading of 3.5% for the U.K.’s 100 largest companies. Further, investors can take comfort in dividend coverage close to the safety threshold of two times: 2014 and 2015 dividends are both covered about 1.9 times.

The canny guide for clever investors
If you already hold shares in Marks & Spencer Group, check out this newly updated …read more
Source: FULL ARTICLE at DailyFinance

Why Retail Sales Rose Last Month

By Jill Ralph, The Motley Fool

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In this video, Chris Nials talks to Jill Ralph about the recent revelations from the BRC that retail sales grew at their fastest pace in two years, and take a look at the performance of Debenhams  followings its first-half figures, while they await Marks & Spencer‘s results as well…

Here at The Motley Fool, we believe one FTSE 100 share in particular has re-envisioned itself to allow for tremendous growth along new horizons. To find out the name of the growth share, simply click here to have the in-depth report delivered to your inbox, completely free.

The article Why Retail Sales Rose Last Month originally appeared on Fool.com.


Jill Ralph and Chris Nials have no position in any stocks mentioned. The Motley Fool recommends Debenhams. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Legal &amp; General Group Lifts Dividend By 20% to Yield 4.7%

By Maynard Paton, The Motley Fool

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LONDON — The shares of Legal & General  climbed 1 pence to 163 pence during early trade this morning after the general insurer lifted its full-year dividend by 20%.

A 7.65 pence per share payout was declared for 2012, up from 6.4 pence per share for 2011.

The dividend news accompanied 12-month results that showed annual premiums up 15% to 2.1 billion pounds and pre-tax profits up 9% to 1 billion pounds. The company said sales of individual annuities jumped 26% while investment assets under management advanced 9% to 406 billion pounds.

Nigel Wilson, Legal & General’s chief executive, said:

Legal & General’s double-digit sales growth in 2012 broke records, again demonstrating that customers value our insurance, savings and investment propositions. An uncertain, sluggish economy has had minimal impact. The more important growth drivers for us are ageing populations, falling state spending on welfare and new long-term investment opportunities as banks retrench.

Looking ahead, Mr Wilson claimed Legal & General had the capability and “focused ambition” to grow earnings further during 2013 and beyond.

He also said the insurer would, following the introduction of new pension rules, “auto-enroll” more than 150,000 employees from Alliance BootsAsdaCo-operative Group, and Marks & Spencer into a new workplace savings scheme.

Based on today’s figures, Legal & General is valued at 12 times earnings and offers a 4.7% income.

Of course, whether this morning’s results, the share-price valuation and the wider prospects for the insurance sector all combine to make Legal & General a buy remains your decision.

However, if you already own Legal & General shares and are looking for an alternative dividend opportunity, this exclusive in-depth report reviews an attractive alternative.

In fact, the blue chip in question offers a 5.7% income and has just been declared the “Motley Fool’s Top Income Stock For 2013”!

Just click here to download the report — it’s free.

The article Legal & General Group Lifts Dividend By 20% to Yield 4.7% originally appeared on Fool.com.

Maynard does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance