Shares in Marks & Spencer (MKS) have rallied the best part of 70% year-to-date and investors are expecting confirmation of continued market share gains and a return to the dividend list when the British retail institution reports first-half results (8 November).

Guided by CEO Stuart Machin, Marks & Spencer will also stage a capital markets event on the day, where management should set out medium-term targets for the retailer which re-joined the FTSE 100 in the latest quarterly reshuffle.

In an unexpected update on 15 August, Marks & Spencer highlighted positive trading and continued market share growth in both food, and clothing and home, in the financial year-to-date. Thanks to better-than-expected sales, the retailer said the impending interims will show ‘a significant improvement’ versus previous expectations and profit for the year to March 2024 is now expected to grow year-on-year, above the firm’s previous guidance.

Concerns for investors ahead of the numbers are that September’s warm weather won’t have helped sales of autumn and winter ranges. And there is evidence many UK shoppers, struggling with inflation and unsettled by geopolitical turbulence, are being careful with their cash ahead of Christmas.

Shore Capital’s upgraded forecasts, which the broker stresses remain cautiously pitched, point to first-half pre-tax profits of £287 million, up 40% year-on-year, and earnings per share growth of 24% to 9.7p, and a 20% rise in full-year pre-tax profits from £482 million to £575 million. According to the broker, Marks & Spencer is a business with ‘strong, multi-year momentum’ and ‘considerable room in the tank for future growth’. 

UK UPDATES OVER THE NEXT 7 DAYS

FULL YEAR RESULTS

7 November: DotDigital, Associated British Foods

8 November: Smiths News, Time Out Group

FIRST HALF RESULTS

8 November: Marks & Spencer

9 November: Wincanton, Wizz Air, Urban Logistics REIT, National Grid, 3i Group, Auto Trader, Cropper (James)

TRADING ANNOUNCEMENTS

7 November: Direct Line Insurance Group, Persimmon, IWG, Beazley, Hilton Food Group

8 November: ITV, Hiscox

9 November: Taylor Wimpey, S4 Capital, Vistry Group, Lancashire, Domino’s Pizza, Flutter Entertainment, Endeavour Mining, Apax Global Alpha, AstraZeneca

‹ Previous2023-11-02Next ›