M&S investors sweat on trading update
Investors in high street giant Marks & Spencer were this week facing an anxious wait as the group prepared to give its latest trading update.
Analysts were not predicting a major improvement in fourth quarter sales - which the firm had hoped would offset its disappointing Christmas season.
Pressure was also said to be mounting on chairman Luc Vandevelde amid concerns his growing list of external interests was harming the company’s prospects.
A majority of shareholders contacted by The Sunday Times were said to have expressed concerns about Mr Vandevelde, who also occupies top positions at private equity firm Change Capital Partners and French supermarket chain Carrefour.
It is understood they want him to cut back on his other directorships and focus fully on the attempted turnaround of M&S.
A spokeswoman for M&S said it was not appropriate for the company to comment on what its shareholders were saying.
Marks & Spencer is expected to outline strategic changes for its clothing division – now headed by former Selfridges chief executive Vittorio Radice – in this Wednesday’s trading update.
According to fund manager Gerrard, the group is likely to rely on benefits from its improved sourcing programme and cost-cutting to achieve profits forecasts for the year.
Profits for the 12 months to March 31 are tipped to rise to £760m (€1.15bn) compared with £713.7m (€1.08bn) last year.
Shortly after Christmas M&S announced a 2.3% drop in like-for-like sales for the seven weeks to January 10.
It blamed a 3% fall in clothing sales on weakness in womenswear, particularly knitwear, clothing and suits.
