Marks & Spencer expected to fall victim of warm autumn

Monday, 03 November 2014
Beloved British retailer Marks & Spencer´s is said to be the next in joining apparel peers such as Supergroup or Next in issuing an earnings warning based on the effects of extremely warm weather in autumn.

According to market sources consulted by Reuters, Marks & Spencer is set to report its thirteenth straight quarterly fall in underlying non-food sales, with trading hurt by Britain's warm autumnal weather, the continuing "settling in" of a new website and a sluggish economic recovery.

Thus, Marks & Spencer is expected to say the results for the 13 weeks to September, 27, its fiscal second quarter, reflected Britain's mild autumn - not helpful for shifting high-margin winter coats, knitwear and boots.

Official data published on October, 23 also showed British retail sales fell more than expected in September, the most important month in M&S's second quarter. The data added to signs the country's economic recovery is losing some of its pace, reported Reuters.

In this context, the retailer will publish its second-quarter sales figures on November, 5 and is anticipated to report a fall in sales of general merchandise - clothing, footwear and homewares - of 3.7 percent from shops open over a year, according to a consensus of analysts' forecasts provided by the company. That compares with a first-quarter decline of 1.5 percent.

In the same vein, the first British clothing retailer by sales will also reports first-half results which are expected to show a 3.7 percent fall in pretax profit to 252 million pounds, down for a fourth straight year.

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