logo-loader

M&S still failing to reach mainstream customers

Published: 10:33 04 Oct 2019 EDT

Marks and Spencer Group PLC -
Signs of recovery in Food are offset by scarce progress in Clothing & Home

Marks and Spencer Group PLC (LON:MKS) is still failing to reach mainstream customers, analysts at HSBC said.

Despite its many efforts in recent years to regain popularity, the retailer continues to struggle to establish a “contemporary and wearable fashion” offer, while battling against fast-fashion peers better equipped to navigate an increasingly competitive market.

Analysts at HSBC lowered their share price target from 239p to 150p and downgraded their recommendation to “reduce”, claiming M&S is not tackling this multi-year decline.

Signs of recovery in Food are offset by scarce progress in Clothing & Home (C&H), which lacks "a differentiated product offer".

Future diversification of M&S’s product offer will therefore take longer to gain traction, as the traditional supply chain will have to undergo structural changes to address its limitations.

Forecasts for profit before tax until FY22 were cut by up to 14%, due to lower like-for-like sales estimates for both Food and C&H.

Last month, the revolving boardroom door saw finance director Humphrey Singer announced his departure after only 18 months in the company, which on the same day lost its spot in the FTSE 100 having been one of the original members when it was established in 1984.  

The shares were down 4% to 172.05p on Friday afternoon.

 

Coniagas Battery Metals secures new key ground with focus on...

Coniagas Battery Metals (TSX-V:COS) CEO Frank Basa joined Steve Darling from Proactive to announce the company's strategic acquisition of key ground near SOQUEM’s Cardinal Property, located 80 km southeast of Chibougamau, Quebec. This acquisition underscores Coniagas’ commitment to capitalizing...

23 minutes ago