The group's food sales were lower than expected and remained in the red despite surging inflation, which M&S said was running at around 2% in its first quarter.
Perhaps more worrying is that analysts are starting to question whether M&S is falling behind its peers, particularly in food sales, which fell 0.1% on a like-for-like basis, below rivals such as Sainsbury and Tesco. Not only did the clothing and homewares sector see another 1.2% drop in sales, the second consecutive decline, but the all-important food sector also saw a decline in sales, dropping 0.1%, whereas estimates had looked for a pick-up of 0.6%.
Meanwhile, food like-for-likes stayed flat in the first quarter, showing a marginal 0.1 per cent dip. He also argued that the overall United Kingdom clothing market was more promotional than a year ago, which is hurting M&S, however he seemed confident that like-for-like clothing sales should move into positive territory later this year. "Trading on a FY2018F PER of 11.5x and an EV/EBITDA multiple of 5.6x, with a dividend yield of 5.7% (1.5x covered by EPS and assuming an unchanged pay-out year-on-year), we reiterate our HOLD stance". "Overall, the sales numbers are modestly below expectations but the commentary is reasonably encouraging with new Simply Food stores performing well and the increase in full price clothing sales sounding positive for profit implications".
In total, sales across the business, including its global operation, increased by 2.7% to £2.5bn.
Rowe has slashed the number of clothing promotions it runs and said full price clothing sales - a guide to profitability - had increased 7%.
Steel Tariffs To Play Major Role At G20 Summit
The Germans are waiting to hear from President Donald Trump during the G20 summit, which begins on Friday in Hamburg, Germany. An assertive US president willing to tear up existing deals. "That hurts us, but it also hurts the Americans", he added.
Fatal Airbag Explosion Triggered by a Hammer
Over 42-million vehicles from more than a dozen automakers have been recalled due to defective Takata airbag inflators. Honda said the vehicle's registered owners had received at least 12 recall notices but never got recommended repairs.
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The 35-year-old says everybody's just bumping into each other, pushing each other to get to their destination. The repairs are expected to last almost two months and to include the closure of a handful of tracks.
Steve Rowe, Chief Executive said, "Trading in the first quarter was in line with our expectations and we are on track with delivery of the plan we announced a year ago".
While LFL sales in food stores fell 0.1% amid the cutthroat grocery market, on a total sales basis food sales were up 4.5%, thanks to new outlets being opened.
"In our Food business, we delivered strong growth from new Simply Food openings, and are prioritising better ranging and stronger promotions".
British store chain Marks & Spencer's turnover grew several percent in the first quarter of its fiscal year 2017/2018.
The drop in clothing sales marks the second consecutive quarter that MandS has failed to meet low expectations, and raises questions over whether Rowe's plan to close 30 United Kingdom stores will be drastic enough in the face of a long-term sales decline.
SC inmate captured after second escape
At approximately 1 a.m., one of those leads pointed law enforcement officials toward Austin and SLED notified Texas Rangers. The inmate, Jimmy Causey , is believed to have received wire cutters via drone to aid in his escape from the prison.
Court To Rehear Charlie Gard's Case
This has triggered a debate over who knows best for a baby's health. "I did my job", he said. Speaking outside the hospital, Yates said: "He's our son, he's our flesh and blood".
Man arrested at airport over Manchester attack
Officer Russ Jackson said at a briefing Thursday: "We do believe that there are other people potentially involved in this". They add: "We also want to express our thanks to all those who have contacted us with their kind wishes and support".
Iowa gas prices unchanged in past week; averaging $2.15 a gallon
AAA says gas prices locally are still some of the lowest of the year, even as prices have ticked up nationally over the past week. Prices Sunday were 8.5 cents a gallon lower than the same day one year ago, and are 12.9 cents a gallon lower than a month ago.
Audi A8 to debut tonight
Rear passengers will get a new foot massaging feature and every powertrain will come standard with a 48-volt mild hybrid system. In terms of exterior design , the new Audi A8 takes its inspiration from the Prologue concept that was showcased back in 2014.
Strong Demand Expectations To Lift Oil Prices
West Texas Intermediate crude , the US benchmark, fell 2.6 percent to $44.32 a barrel as of 7:58 a.m.in NY on Friday. The producers elected in May to extend their curbs through March 2018, as the oil market has yet to stabilize.