Marks And Spencer Share Discussion Threads

[daddy warbucks] 02/11/2023 19:50

Great advert. Do things differently. No shopping at M&S then !

[philanderer] 02/11/2023 14:34

Food retailers enlist celebrities as Christmas ad rivalry moves online

Marks & Spencer signs up Ryan Reynolds and Rob McElhenney

[debsdowner] 02/11/2023 13:09

PO

I didnt realise whether it was the ad or the main Christmas video so like you confused.

What I saw on TV last night didn't inspire me.

Sainsburys boosted today on good growth but concerned on clothes seems only NEXT and MARKS doing well on that front...


Sainsbury’s (LON:SBRY) relentless focus on value is reaping some rewards, which could position it well in the lead up to the key Christmas trading period.

Its value offerings, which now include the availability of Nectar on 6000 products, comes alongside a decline in food inflation, where the group states that these savings are being passed on to customers. This has been reflected in a bounce of sales across many of its lines, with like-for-like sales growth of 8.4% excluding fuel representing a good return, if slightly shy of the 9.8% achieved in the first quarter.

Grocery sales are a particular focus of growth as Sainsbury continues to return to its knitting, with an increase of 10.1% over the period. General Merchandise also rose by 1.1%, buoyed by a 3.3% bounce in sales from Argos, where strong sales of electronic equipment offset seasonally quieter trends. At the same time, with Sainsbury having relocated many of the Argos stores into its own existing supermarket space, the fixed cost base has been reduced, which inevitably boosts margins.

Clothing sales on the other hand remain a concern. A decline of 8.4% followed a combination of competition and unseasonal weather and in the absence of any seasonal sale promotions. The recent release of UK retail sales in September had already provided a warning sign, where a notable fall reflected the fact that cost-of-living pressures were weighing on customers, particularly with regard to non-essential goods. This remains an area in which Sainsbury retains a keen interest, although the currently concerted focus on Grocery is to some extent at the expense of the clothing lines.

Keeping shopping prices low has had a positive impact on the group’s market share, but of course this comes at a cost to Sainsbury itself. Since March, for example, the company has invested £118 million on price reductions. The ferocity of competition, particularly in the supermarket arena, is well established and shows little sign of abating, such that the group will need to keep a constant lid on prices in order to remain in the mix.

At a headline level, revenues increased by 3.5% while, due to some accounting items pre-tax profit fell by 27% to £275 million, with underlying profit flat at £340 million. Rather more positively, the group has increased its forecast for the full year to a range between £670 to £700 million, from a previous guide of £640 to £700 million. At the same time, the company’s cash generative ability is also in focus, with Sainsbury now expecting retail cash flow of at least £600 million for the year, versus a previous estimate of £500 million.

This has also led to a further £700 million reduction in net debt to £5.6 billion, while also enabling the dividend to be maintained. The yield is well covered from earnings and at 5% it remains something of an attraction to income-seeking investors. Meanwhile the target of £1.3 billion of cost savings by March 2024 is still comfortably on track.

The shares have performed strongly of late, having risen by 31% over the last year, as compared to a gain of 2.8% for the wider FTSE100. Over the last two years, however, the price is down by 11% which gives some perspective to the ongoing challenges which the group faces. Indeed, the fiercely competitive sector applies not only to consumers but also to investors, as evidenced by the market consensus, where the gulf between itself and Tesco (LON:TSCO) is in plain sight. Tesco is comfortably the preferred play in the sector, while the general view for Sainsbury remains rooted at a sell despite its own valiant efforts.

[pierre oreilly] 02/11/2023 13:05

The 12 countries with red, white, and green flags are Algeria, Belarus, Bulgaria, Burundi, Hungary, Iran, Italy, Lebanon, Madagascar, Maldives, Mexico, and Oman.

[pierre oreilly] 02/11/2023 12:53

Didn't notice the Palestinian link when i watched it. I guess, like 99,9%, the link has to be explained to them.

Very poor acting, strange message (dump Christmas?), snow which looks like someone's just opened an amazon delivery and the polystyrene bobbles haven't been cleared up yet, just surprisingly really poor. I hope they get some of the £20 million, or whatever they paid for it, back.

Next ad agency please.

[debsdowner] 02/11/2023 12:31

Didn't think ad was very good in any event despite reasons for pulling.

Interest rates on hold with warning from BOE rates will stay higher for longer with possibility of a further rise.

Also growth downgraded this year next year and year after.

In view of BOE forecast I can see the good rise in footsie 100 and 250 reversing.

[eeza] 02/11/2023 12:09

M & S pulls ad due to Palestinian flag criticism.


The Ad was shot in August.

[thelongandtheshortandthetall] 02/11/2023 11:40

Gotta admit that ad is terrible.

[dancing piranha] 02/11/2023 08:44

Awful Xmas ad.....Go woke go broke!

[bigbigdave] 02/11/2023 08:37

Christmas advert has been pulled, thought it was pants actually

[eeza] 01/11/2023 17:24

Advert

hxxps://youtu.be/jPOhVhQ9YeA

[debsdowner] 01/11/2023 17:22

darrin,

Thanks for the correction.

[philanderer] 01/11/2023 14:19

Read across...

'Next rose 3.5%, after it raised its annual profit guidance to £885 million'

[darrin1471] 01/11/2023 14:04

ASOS rumours were about a Topshop sale.
BooHoo own Debenhams brand.

Next's Q3 store sales were -0.6% and online +6.5%
Next's year to 28 October store sales were +0.4% and online +4.9%

[debsdowner] 01/11/2023 11:41

Grim news on ASOS today loss of £300 million and not to return to profit until 2025. A few days ago rumours they may offload Debenhams...



Bricks and mortar powering ahead of the mainly online retailers what a turn a round.

[bigbigdave] 01/11/2023 07:14

NXT decent, might boost MKS today

[bigbigdave] 31/10/2023 17:36

Had a few root canal treatments, wouldn't feel like doing anything afterwards!

[johnwise] 31/10/2023 16:08

"Another brownie point for Marks & Spencer is the affordability of its advent calendar. Priced at just £45 (if you've spent the £35 on other items), it stands out as one of the most budget-friendly options in the market. With its impressive array of renowned brands and quality offerings, it's not just a deal; it's simply a no-brainer".

[xxxxxy] 31/10/2023 12:51

WANTED.DIVIDEND!!!

[xxxxxy] 31/10/2023 12:51

 Board plans to restore a modest annual dividend to shareholders starting with an interim dividend with the results in November... M&S