Marks & Spencer and Primark owner in investor spotlight over consumer spending squeeze
Marks & Spencer and Primark’s parent firm Associated British Foods have both seen their shares slip this year as rising costs and pressure on households eat into their financial performance.
High street stalwart M&S has so far highlighted resilient demand from customers returning to stores over the past year.
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Hide AdIt is expected to reveal a 4.6 per cent increase in total food sales and 7.1 per cent rise in clothing and home over the half-year to the end of September when it updates investors on Wednesday November 9.
Analysts at Investec said they expect bosses at the retailer to highlight “solid sales progress” across both the food and clothing and home divisions.
The firm’s clothing operation, which had come under pressure in recent years, is expected to be particularly positive despite the uncertain consumer backdrop after an overhaul by management.
“Investors are expecting a reasonable showing from clothing, where the group has made real strides online and in-store,” commented Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
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