MA6.F - Marks and Spencer Group plc

Frankfurt - Frankfurt Delayed price. Currency in EUR
2.2920
+0.0020 (+0.09%)
As of 8:03AM CEST. Market open.
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Previous close2.2900
Open2.2920
Bid2.2920 x 200000
Ask2.4060 x 200000
Day's range2.2920 - 2.2920
52-week range1.8020 - 3.4101
Volume14,000
Avg. volume370
Market cap4.913B
Beta (3Y monthly)1.02
PE ratio (TTM)95.50
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yield0.15 (6.70%)
Ex-dividend date2019-05-30
1y target estN/A
  • U.K. Shoppers Will Win This Christmas
    Bloomberg

    U.K. Shoppers Will Win This Christmas

    (Bloomberg Opinion) -- British retailers begging Santa for a Brexit deal for Christmas may be getting what they asked for.The crucial holiday shopping period, which accounts for a large proportion of their annual profit, is always nail-biting for store chains. This year, it is inextricably linked to Britain’s departure from the European Union.With a Brexit divorce deal in hand, fears of a no-deal split have receded. Crashing out on Oct. 31 would have been disastrous. By contrast, a deal – assuming it gets through the U.K. parliament – has the potential to bring a feel-good factor for retailers. It could unleash some pent up demand, particularly for big ticket items, such as fitted kitchens and sofas. Consumers have held back from splurging on such things, even though wage growth has been outpacing inflation. Demand has already picked up this month, thanks largely to colder weather compared with a year ago. That may bode well.But, there’s still plenty of uncertainly that could weigh down the festivities, including the possibility of the current deal collapsing, a referendum to confirm it or a general election being hastily called. For the past couple of years, consumers’ anxiety over Brexit hasn’t been at a constant level. It has ebbed and flowed with the sense of crisis in government.In September, the volatility was so extreme that some retailers could even predict their sales based on that day’s headlines. The collapse of Thomas Cook, another jolt to the consumer sector, didn’t help either. Any election campaigning on crucial shopping days would be equally distracting, particularly for affluent Britons fearful of a Labour government led by Jeremy Corbyn. But all year the British high street has been battling cautious consumers, as well as the rise of online shopping. Even internet-based retailer Asos Plc has been hurt by nimbler rivals.Whatever happens with Brexit, the prime holiday shopping period will fall late. Christmas is on a Wednesday this year, providing a full extra weekend in December to shop ahead of the holiday.Black Friday, the crazy U.S. shopping tradition that’s taken the world by storm, is at the end of November, a week later than in 2018. Over the past five years, the price-slashing event has sucked forward about 2 billion pounds ($2.6 billion) of spending from December into November, according to Richard Hyman, the independent retail analyst. It is always hard for stores that have discounted over the Black Friday weekend to return to full price for Christmas. This year’s timing makes it virtually impossible. Even if demand isn’t disrupted by another Brexit hiatus or an election, there is the potential for discounts running from the end of November through to the holiday. It’s going to be hard for chains to hold their nerve.Brexit means forecasting Christmas sales is even more difficult than usual. But Hyman estimates that non-food sales will fall by 1%, while food sales will be flat, both a deceleration from last year. If he’s right, it would be the first drop December non-food sales since the referendum. Given that the level of discounting is likely to be intense wherever sales land, they are likely to be less profitable.Amid this environment, what is certain is that the discount sector will do well, in food and fashion. The U.K. arms of the German discounters Aldi and Lidl are making efforts once more to prevent customers defecting to one of the big British supermarkets for their main holiday shopping. Upmarket and vegan food products will be a particular feature of their festive offering. Associated British Foods Plc’s Primark, which has been elevating its gift selection and party dresses over the past few years, should also do well.Mid-market chains, such as Marks & Spencer Group Plc could find life tougher, even as some of their competitors are weakened. The privately owned John Lewis Partnership is preparing for even its more financially comfortable customers to be cautious, with plenty of gifts under 20 pounds such as Fever-Tree gin &tonic Christmas crackers and so-called experiences, such as personal shopping and spa days. Although they are more expensive, at about 100 pounds, consumers may feel they are getting more for their money than when they buy traditional gifts.And even if Christmas does turn out to be better than expected – because a Brexit deal has been struck and an election delayed until 2020 — that doesn’t mean plain sailing from now on.  The political wrangling is far from over. What’s more, three years of uncertainty have taken their toll on business investment. Britain shed jobs over the summer for the first time in two years. And let’s not forget any impact from a global slowdown in 2020. Consumers make the most drastic changes to their spending when they are made redundant or they see friends leaving the workforce.British retailers should extend their Christmas wish list to what happens in the New Year too.\--With assistance from Therese Raphael.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Why Marks & Spencer Is Starting to Look More Like Whole Foods
    Bloomberg

    Why Marks & Spencer Is Starting to Look More Like Whole Foods

    (Bloomberg) -- For a taste of Chief Executive Officer Steve Rowe’s ambitions to transform Marks & Spencer Group Plc, look no further than its newly refurbished shop in London’s Clapham neighborhood.The store looks more like a Whole Foods Market than one of the 135-year-old British retailer’s more traditional outlets. Alongside piles of avocados and herbs grown with the help of artificial intelligence -- there are three kinds of basil -- it features a wood-fired brick oven coated with glittering mirror tiles like those on disco balls.What’s absent is just as important: The clothing that’s been a mainstay of the retailer’s large outlets for decades but has become a tough sell, hampering its turnaround efforts.M&S, an institution in the U.K., is threatened from all sides. Its business of selling both clothing and food has exposed it to competition from the likes of Amazon.com Inc. as well as fast-fashion chains such as Zara and discount grocers like Lidl and Aldi.Because of a shift toward online shopping and a Brexit-related slump in consumer confidence, U.K. retail is deep in a funk that has prompted chains like Debenhams Plc and House of Fraser to shut dozens of stores. Last month, M&S, one of the original members of the FTSE 100 Index, was kicked out of the stock benchmark for Britain’s biggest companies.Comfort ZoneThe new store moves the company beyond the comfort zone its food business has occupied until now -- offering niche items and lunch fare like hoisin duck rolls that aim to make grocery shopping more exciting than a trip to the supermarket, at prices accessible to a middle-England clientele. The company jazzed up the Clapham site further with services such as wine and coffee experts, setting it apart from Marks & Spencer convenience stores.The new style reflects a strategy that Stuart Machin, M&S food managing director, calls “protecting the magic and modernizing the rest.” The company plans to open several similar stores before the end of the year to test whether they can turn around its fortunes.The stock has lost more than half its value since 2015. The clothing arm has suffered a long decline as it failed to stay as nimble and cheap as rivals. As clothing revenue shrinks, Marks & Spencer now gets almost two-thirds of its sales from food.With the new, larger stores, M&S is trying to change a perception that it’s just a convenience retailer “for tonight,” wrote Barclays analyst James Anstead. Analysts at Numis Retail, meanwhile, called a new partnership with online food seller Ocado Group Plc “the single biggest source of potential value creation” for M&S.Even the food segment has suffered setbacks, though. M&S expects to close around 25 smaller Simply Food stores, as well as a further 85 full-line stores this fiscal year as it reorganizes the business.Share SlumpThe shares have sunk further on concern over the company’s plan to finance the Ocado venture. M&S has also endured an exodus of top managers, with the head of clothing departing in July and Chief Financial Officer Humphrey Singer resigning last month.Berenberg analyst Michelle Wilson said the changes won’t take hold immediately. “M&S is undertaking the necessary restructuring,” she wrote. “But until that transformation is complete, it is fighting with one hand tied behind its back against more agile peers.”Rowe, a three-decade veteran at the retailer, has a tough boss: Chairman Archie Norman, who joined in 2017 and is known for a no-holds-barred turnaround of grocer Asda.The CEO acknowledged at a recent investor meeting that the transformation of the M&S clothing and homeware business -- which generates around half of its profits -- is about 18 months behind schedule. While the picture is rosier in food, Berenberg’s Wilson questioned how much of a recent improvement in volume has been driven by price cuts.Fighting for market share in a cutthroat retail sector filled with online, discount and fast fashion incomers has left M&S looking “increasingly isolated,” say HSBC analysts Paul Rossington and Andrew Porteous. If one of Britain’s most historic brands is to thrive once more, it’s going to have to entice a new generation of shoppers through its doors -- and not just in Clapham.To contact the reporter on this story: Greg Ritchie in London at gritchie10@bloomberg.netTo contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Thomas MulierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Calling ISA investors! Could this 6% dividend yield help you retire rich or cost you a fortune?
    Fool.co.uk

    Calling ISA investors! Could this 6% dividend yield help you retire rich or cost you a fortune?

    Is this dirt-cheap FTSE 250 dividend stock too good to be true? Royston Wild takes a look at what investment here could do to your shares portfolio.

  • Is the Marks & Spencer share price a buy after 45% one-year fall?
    Fool.co.uk

    Is the Marks & Spencer share price a buy after 45% one-year fall?

    The Marks & Spencer (LON: MKS) share price has crashed as profits fall, but here's a retail stock whose earnings are up.

  • Reuters - UK Focus

    UPDATE 2-Banks lead FTSE 100's descent; Thomas Cook collapse buoys rivals

    The FTSE 100 fell 0.3% with financials and mining stocks dragging the most, while the FTSE 250 midcaps index shed 0.6%. The banking index lost nearly 1%, tracking a fall in British bond yields, after weaker-than-expected German data showed the private sector contracting for the first time in more than six years.

  • Bloomberg

    Marks & Spencer CFO Singer to Step Down Amid Retailer Revamp

    (Bloomberg) -- Marks and Spencer Group Plc Chief Financial Officer Humphrey Singer plans to leave his post and the U.K. retailer is searching for his successor.Singer’s departure date hasn’t yet been decided and he’s working with Chief Executive Officer Steve Rowe to ensure a smooth transition, the company said Saturday in a statement.“After 18 months of working with Steve to lead the transformation strategy and rebuild the finance function I have decided that now is the right time to move on,” Singer said in the statement.The departure marks the latest twist in what has been a roller coaster few months for the retailer. This month the company was demoted from the FTSE 100 index for the first time, following a mixed reception to its plans to finance a joint venture with Ocado Group Plc via a rights offering and dividend cut.Its shares have fallen more than 30% since the tie-up was announced in February.Challenging TurnaroundSinger has decided it was a natural time for him to move on with details of the Ocado financing now wrapped up. He called the company’s turnaround “challenging but hugely rewarding.”The milestone deal with Ocado to deliver grocery orders in the U.K. was viewed as a way to help bolster M&S’s key food business. But investors haven’t shared this optimism, fearing another costly store revamp as profit falls.At the company’s full-year results in May, CEO Rowe said M&S had “not been consistent in its delivery in a number of areas of the business,” and it expected trading for the year to be second-half weighted as its transformation efforts continue.M&S expects to close around 25 Simply Food stores, as well as a further 85 full-line stores, and forecasts that net store closures will reduce sales in its food business by around 1% for the new financial year.Singer will stay in place until a successor is found, with an orderly handover a key focus for the company as it looks to navigate the retail industry’s choppy waters at a time when Brexit is weighing on U.K. consumer confidence.(Updates to change headline, add details throughout.)To contact the reporter on this story: Rebecca Smith in London at rsmith599@bloomberg.netTo contact the editors responsible for this story: Sunil Kesur at skesur@bloomberg.net, Charles Daly, Sara MarleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    RPT-GRAPHIC-FTSE 100's changing face: A trip down memory lane

    Marks & Spencer's exit from the FTSE 100 underlines how times have changed since the blue-chip index was launched in 1984, when it was dominated by British companies including household names like M&S, Cadbury and House of Fraser. Home-grown talent is increasingly absent from the FTSE, now valued at $2.4 trillion, as failure to grow domestically or make the cut internationally has seen companies disappear via mergers, demotions, de-listing or privatisation. MFI Furniture was among founding members of the index that failed to survive after privately-owned IKEA entered the UK market in the 1980s.

  • FTSE 100's changing face - trip down memory lane
    Reuters

    FTSE 100's changing face - trip down memory lane

    Marks & Spencer's exit from the FTSE 100 underlines how times have changed since the blue-chip index was launched in 1984, when it was dominated by British companies including household names like M&S, Cadbury and House of Fraser. Home-grown talent is increasingly absent from the FTSE, now valued at $2.4 trillion (1.94 trillion pounds), as failure to grow domestically or make the cut internationally has seen companies disappear via mergers, demotions, de-listing or privatisation. MFI Furniture was among founding members of the index that failed to survive after privately-owned IKEA entered the UK market in the 1980s.

  • Marks & Spencer to be kicked out of FTSE 100 for first time
    Reuters

    Marks & Spencer to be kicked out of FTSE 100 for first time

    Marks & Spencer will be relegated from London's FTSE 100 index for the first time since the inception of the blue-chip index in 1984, according to Reuters calculations based on Tuesday's closing prices. The 135-year old retailer's shares were valued at 3.7 billion pounds ($4.54 billion), making it the 115th most valuable stock among London-listed companies, according to closing data. FTSE Russell, London Stock Exchange-owned index provider, requires companies to be ranked 110 or higher to be a part of the FTSE 100 index.

  • Reuters - UK Focus

    UPDATE 1-Fawaz Alhokair's M&S deal in Saudi ends, still partners elsewhere

    Saudi Arabia's Fawaz Abdulaziz Alhokair said on Wednesday its franchise agreement in the kingdom with British retailer Marks & Spencer had ended, along with similar deals with a number of "non-performing" brands. Marks & Spencer (M&S) said in an email that its franchised stores in Saudi Arabia were transferred to Al-Futtaim Group in 2018. M&S has 15 franchised stores in Saudi Arabia.

  • Fawaz Alhokair's M&S deal in Saudi ends, still partners elsewhere
    Reuters

    Fawaz Alhokair's M&S deal in Saudi ends, still partners elsewhere

    Saudi Arabia's Fawaz Abdulaziz Alhokair said on Wednesday its franchise agreement in the kingdom with British retailer Marks & Spencer had ended, along with similar deals with a number of "non-performing" brands. Marks & Spencer (M&S) said in an email that its franchised stores in Saudi Arabia were transferred to Al-Futtaim Group in 2018. M&S has 15 franchised stores in Saudi Arabia.

  • Reuters - UK Focus

    Saudi retailer Fawaz Alhokair pulls out of M&S franchise partnership

    Saudi Arabian retailer Fawaz Abdulaziz Alhokair Co. has pulled out of its franchise partnership with British store group Marks & Spencer and has ended similar agreements with a number of "non-performing" brands, it said on Wednesday. Marks & Spencer (M&S) was not immediately available to comment outside of its business hours.

  • Reuters - UK Focus

    UPDATE 2-UK shares tumble as trade tensions fuel sell-off

    Britain's stock market indexes fell sharply on Monday, joining a sell-off in global markets, as U.S.-China trade tensions prompted investors to seek safe-haven assets, while Ocado and Marks & Spencer fell after sealing a deal to set up an online food joint venture. The FTSE 100 shed 2.5% in its worst day since early December, while the mid-cap FTSE 250 sank 2% and hit its lowest level in two months.

  • Reuters - UK Focus

    REFILE-UPDATE 1-M&S targets doubling of food business after Ocado deal

    British retailer Marks & Spencer is targeting a doubling of its 6 billion pound ($7.5 billion) food business, driven by its new joint venture with online supermarket Ocado, chairman Archie Norman said on Tuesday. M&S bought a 50% share in Ocado's UK retail business for an initial 562.5 million pounds ($701 million) in February, which will provide M&S with a home-delivery service from September 2020 at the latest. "Our ambition is to double the size of our food business and Ocado sets us well on the way to doing that," Norman told investors at M&S's annual shareholders' meeting, held at Wembley Stadium in London.

  • M&S targets doubling of food business after Ocado deal
    Reuters

    M&S targets doubling of food business after Ocado deal

    British retailer Marks & Spencer is targeting a doubling of its 6 billion pound food business, driven by its new joint venture with online supermarket Ocado , chairman Archie Norman said on Tuesday. M&S bought a 50% share in Ocado's UK retail business for an initial 562.5 million pounds in February, which will provide M&S with a home-delivery service from September 2020 at the latest. "Our ambition is to double the size of our food business and Ocado sets us well on the way to doing that," Norman told investors at M&S's annual shareholders' meeting, held at Wembley Stadium in London.

  • Reuters

    M&S pension scheme transfers 1.4 billion pounds to two insurers

    British retailer Marks & Spencer's pension scheme has transferred a total of 1.4 billion pounds ($1.77 billion) in liabilities to two insurance groups Pension Insurance Corporation (PIC) and Phoenix, the insurers said on Thursday. British companies are increasingly offloading risks linked to their pension schemes to specialist insurance companies, partly because of increased life expectancy. PIC is insuring 900 million pounds in liabilities of the 10 billion pound Marks & Spencer Pension Scheme in its first transaction with the scheme, it said in a statement.

  • Reuters - UK Focus

    M&S pension scheme transfers 1.4 bln pounds to two insurers

    British retailer Marks & Spencer's pension scheme has transferred a total of 1.4 billion pounds ($1.77 billion) in liabilities to two insurance groups Pension Insurance Corporation (PIC) and Phoenix, the insurers said on Thursday. British companies are increasingly offloading risks linked to their pension schemes to specialist insurance companies, partly because of increased life expectancy. A company's pensions obligations sit on its balance sheet and can limit its financial options, so often boards seek to pass on the burden.

  • Reuters

    Never mind the profit fall, M&S says, focus on the changes

    By James Davey LONDON (Reuters) - Marks & Spencer asked to be judged on how fast it is changing as much as its financial results on Wednesday, as the British clothing and food retailer reported a third ...

  • Brexit worries hit domestic stocks but sterling slide lifts FTSE 100
    Reuters

    Brexit worries hit domestic stocks but sterling slide lifts FTSE 100

    The main index, whose companies earn more than two-thirds of their profit from abroad, ended 0.1% higher, while the more domestically-focused FTSE 250 slipped 0.7%. A slump in sterling lifted internationally-exposed companies GlaxoSmithKline, Unilever and AstraZeneca, the biggest boosts to the FTSE 100. Stocks most sensitive to the any increased risk of a hard Brexit stumbled after multiple media reported rumours May's ministers could oust her in a row over her latest deal to exit the European Union.

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