This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Marks & Spencer (Q1 trading statement 11 July)
The full-year results from Marks & Spencer saw a 64% fall in pre-tax profit, as the firm boosted investment, but an 11% rise in full-price clothing and home sales was trumpeted as evidence of real improvement. But the outlook seems tough, with retail sales growing only 0.9% in May, the lowest since April 2013. A robust dividend does not really compensate in the longer-term for a difficult trading environment. CEO Steve Rowe may find that he is not out of the woods yet.
A spike above 390p was defeated at the end of May, with the price heading back into the 313p – 359p range that has held since last summer. A break above 359p still needs to crack the descending trendline off the 2015 highs. Meanwhile, a drop below 313p would clear the way to 256p.