Retail bellwether Marks & Spencer (MKS) may need to deliver a modest ‘beat’ to the £679.8 million consensus pre-tax profit estimate, along with a reasonably confident outlook statement, when it serves up full-year results (22 May) if the foods-to-fashion giant is to sustain recent positive share price momentum.

Led by CEO Stuart Machin, the FTSE 100 company’s turnaround is gaining traction and Marks & Spencer has been winning market share over recent quarters. Peel Hunt believes the FTSE 100 firm’s food like-for-like sales should have remained strong in the fourth quarter of the year to March 2024, and the broker also predicts ‘good news’ on the product evolution front in the clothing and home division where a new ex-Arcadia team is ‘pulling the strings’.

Yet while real UK incomes are rising, Marks & Spencer’s management may refrain from upgrading year-to-March 2025 profit guidance given prevailing wage cost pressures and the fact the company is lapping tough first half comparatives. Both divisions saw a slowdown in the pace of third quarter growth versus the prior first-half period, while recent downpours won’t have helped the retailer shift seasonal clothing lines.

Investors will also be eager for an update on the performance of Ocado Retail, the loss-making 50/50 joint venture with  Ocado (OCDO), which according to Kantar saw sales grow by a rapid 12.5% in the 12 weeks to 14 April 2024, ahead of the 6.8% growth of the total online market.

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

17 May: Land Securities

20 May: Union Jack Oil, Kainos, Likewise

21 May: Pennon, Caledonia Investments, Cranswick, Assura, Diaceutics

22 May: HICL Infrastructure, British Land, Marks & Spencer, SSE, Severn Trent, Great Portland Estates

23 May: Johnson Matthey, Wizz Air, Helical, National Grid, Investec, Bloomsbury Publishing

FIRST-HALF RESULTS 

21 May: SSP Group, Watkin Jones, Topps Tiles

23 May: Essentra

TRADING ANNOUNCEMENTS

21 May: Smiths Group 

22 May: Empiric Student Property, Kingfisher, Aviva, Close Brothers

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