Marks And Spencer Share Discussion Threads

[miata] 30/3/2011 11:42

Oriel Securities analysts say M&S's fourth-quarter general merchandise sales could be down as much as 8 percent on a like-for-like basis, and cut their pretax profit forecasts for 2010-11 and 2011-12 by 40 million pounds and 30 million pounds respectively, to 700 million and 780 million.

[gruss] 30/3/2011 09:40

WOW. Not even 09.40 and over 4 million shares traded. Time to batten down the hatches.

Dixons Retail has slumped more than 10% after a profit warning. The PC World and Currys owner says consumer confidence has deteriorated, particularly in Britain and Ireland. That does not bode well for the high street and elsewhere in the retail sector, M&S, Next, Argos owner Home Retail Group and Comet owner Kesa Electricals are suffering.

[careful] 29/3/2011 18:00

philip green did not make a bid in 2004.
he was told to put up or shut up so he walked away.
they would not let him look at the books.

[isis] 29/3/2011 07:12

What Lies in Store for Marks & Spencer in Depressed U.K. Retail Market?

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COMMENTARY
By ALESSANDRO PASETTI

If Marks & Spencer Group is committed to creating value, despite a dreary near-term business environment, it has all the pieces it needs. The international and domestic businesses should be separated, turning them into potential targets-and attracting a higher valuation for both.

Just last week, J. Sainsbury's 4Q financials and the latest set of U.K. retail figures have emphasized the grim outlook for U.K. retailers. Consumers are squeezed, higher input costs erode retail margins, and flat top lines neutralize operating leverage.

Sales at M&S are almost evenly split between high-end food staples and discretionary goods, neither of which is immune to the current macroeconomic difficulties. Accordingly, M&S finds itself trading at a significant discount to domestic peers.

Little surprise that press speculation has made Sainsbury a potential suitor for M&S. When organic growth sputters, deals beckon. The speculation could have just as easily made M&S the acquirer-but the derivate markets, for their part, agree that Sainsbury is more likely to bid than be bid for.

But waiting for a takeover is not a strategy. Management should actively facilitate a deal by spinning off the international division. International accounts for just 14% of the group's 2010 Ebitda (£1.28 billion) and 10% of sales, but boasts better growth prospects, higher profitability, and lower capex than the core business. Were it to be spun off, it could command a premium to the depressed 5.9x 2011 Ebitda multiple of M&S as a whole.

A 25% premium-a reasonable 10x multiple on the unit's 2011 Ebitda forecast-yields an enterprise value of roughly £2 billion. This valuation is hardly a stretch, given that the business has more than doubled sales and Ebitda since 2005. It still represents a 10% discount to typical mid-cycle multiples for U.K. retailers.

The unit would be bite-sized for bidders seeking international growth. And an independent international business wouldn't need any new leadership: The recently appointed Jan Heere-formerly of Zara's parent Inditex-is the right man to lead the value-creation charge.

Inevitably, a spin-off of M&S international would leave the parent weakened. Growth would be diminished. But a shareholder-friendly spin-off could attract investors seeking proactive, value-conscious management. Downside risk on a standalone M&S UK appears minimal as the stock-despite Thursday's spike-seems to price in any possible bad news already.


The separated domestic business could attract bidders too. A bid with a significant premium would still be at a discount to the offer that Philip Greene made in 2004. That bid came in at roughly 1.1x sales. All of M&S now trades at 0.8x sales.

M&S management must know something about attracting shoppers. It's time for them to apply their skills at the corporate level.

This article originally appeared on Dow Jones Investment Banker. To find out more about the service please visit: www.dowjones.com/ib/

[gruss] 28/3/2011 10:14

If you have the right products at the right price then the retailers will do well. Take a look at Primark and Next. Doom and gloom from the first retailer and
yet Next seem to be doing alot better.

Also there was a fire at the MKS in Exeter and the store had to close for a few weeks. During that time takings in the town centre for other shops dropped by 10%. This was purely put down to MKS being closed.

Ås I have said still holding alot from £2.00 and very happy to retain my holding.

Good to hear nickward is still with us and only slightly scorched!

[isis] 28/3/2011 09:34

The Government are trying to shift the employment onus onto the Private Sector with a reduction in the Private Sector - This was inevitable whoever was in power.
The measures and reduction in Corporation Tax goes someway in helping with this but there is a longway to go.
People still seem to find the £700/£800- for a new iPad so perhaps the are not as skint as the media would have us believe.

The Chavs may buy less takeaways and bling though.

[nickward] 28/3/2011 09:25

Gruss/ RobertFaulkner

There appears to be some glee that I may have been burned shorting this. Sorry to disappoint you nasty chaps but I am short from 400p, I will only close this short if the closing price goes above 360p. I believe this country is in for a hell of a shock once these cuts begin to really bite. Not only the public sector but the private sector as well. I was talking to a programmer who works on software contracts for NHS, Local Government and National Government, they are all being cut with redundancies on the cards. By the end of this year there will be well over 3 million unemployed. This will push the deficit back up. MKS may have benefited when the country was working, but now that Britain has stopped working I am reminded of the old adage 'Past performance is not a guide to future performance'. Unless there is a genuine takeover bid this share is not a short term buy

[isis] 25/3/2011 07:57

M&S recruits style guru Conran

Published Date: 25 March 2011
Marks & Spencer unveiled a partnership with the founder of Habitat yesterday as part of a move to modernise its Home department.
Influential British designer Sir Terence Conran, who opened the first Habitat store in London in 1964, will oversee the design of furniture, bedding, lighting and kitchenware in the "contemporary" section. Conran is also well known for developing several restaurants.

[isis] 24/3/2011 14:20

LONDON (ShareCast) - Retailers are in focus in London, providing some badly needed interest in a market that has been sleep-walking since the Chancellor of the Exchequer stood up to give his speech yesterday.

Next paraded a 9% rise in full-year profit to a new record, exactly what the City was expecting following guidance from the fashion retailer in January. Profit before tax increased to £551.4m in the 12 months to January, up from £505.3m in 2010, led by catalogue arm Next Directory where profits jumped 21% from £183.6m to £221.9m this time.

The shares move up, dragging Marks & Spencer along with them.

Do-it-yourself retailer Kingfisher built profits by 19% last year, pretty much in line with market expectations.

[isis] 24/3/2011 12:01

I have noticed they have put up their prices on clothes from last year - they're not cheap but sell good stuff.

[gruss] 24/3/2011 11:59

How can anyone compare Primark with MKS. Primark sell cheap clothes and Mks sell quality items that are inexpensively priced.

[isis] 24/3/2011 11:55

I bought some last week so pleased with the performance. This new chap has some good plans I think and a very good track record.

Of course the caveat is the UK retailing doubts.

[artnouveau] 24/3/2011 11:04

11 o'clock and over 10million shares traded

[artnouveau] 24/3/2011 10:12

Qatari's being mentioned and also in conjunction with Sainsbury's. Also yesterday's silly rumour had Qatari's backing Sainsbury to bid for M&S.

Private equity makes sense as M&S owns its commercial property. The company is also reducing debt and plugged pension hole.

Others could be the likes of Philip Green or the rise in recent days is purely fund managers stocking up ahead of results/dividends which are paid in July and Christmas.

Shares were undervalued and as the past 3 days has shown there's been some very large transactions on the buy side.

|ArtN

[robertfaulkner] 24/3/2011 10:08

I thought Nicward was a Fund Managers, but the miracle of Google shows(It's incredible that it can find it) a poster on ADVFN on MKS thread.

I don't take in the posters names as most are usually just initials.

I'll give up China buying MKS for a shorter being burnt

[gruss] 24/3/2011 10:06

Just seeing the price rise is excitement for me. I bought in at £2.00 a long while ago so very happy.

[robertfaulkner] 24/3/2011 10:02

Thanks Gruss, not as exciting as I hoped but the price is going the right way

[gruss] 24/3/2011 09:56

Coming back down to earth a bit the reason for the shares are doing well is because of good figures coming out of other fashion retailers at the moment. Next is is probably their main competitorand posted very good figures today and this is having a knock on effect for MKS. Also their was speculation in the Daily Mail yesterday that Sainsbury may be interested in bidding for MKS.

Also Nickward is having to buy MKS stock back he has been shorting on so no doubt this has helped!!!!!!!!!!!

[robertfaulkner] 24/3/2011 09:46

What about a China wealth fund, M&S is the only retailer in UK that doesn't sell only 'Made in China' products.

It would be if they owned it. Maybe they want to go up market, open a chain in China and get the Burberry business that the Chinese mainlander's are buying in China and when they are abroad.

Would Cameron allow M&S to be bought by a foreign company after the Roundtree fiasco.

Imagine the share price if even a hint of buying by China.

GET TWEETING GUYS

[robertfaulkner] 24/3/2011 09:37

Someone must be building a stake, you don't get days of price rises in MKS when the Gov cuts haven't even started yet (Start April)

Who can it be, it can't be Philip Green again, can it?

[gruss] 24/3/2011 08:57

I just hope our friend Nickward is not getting stockburn.lol

[artnouveau] 24/3/2011 08:50

4 million shares already traded

[isis] 24/3/2011 08:35

Good figures from KGF too.

[gruss] 24/3/2011 08:33

Also good figures from the owner of Zara was a contribution to the rise yesterday.