M&S shares remain down with warm weather affecting general merchandise
M&S shares continued to fall today as the retailer forecasts "a long journey ahead" and one analyst reduces its pre-tax profit forecasts for 2013 from £700m to £665m.
The company note from Cantor Fitzgerald reported that a decline in gross margins is anticipated to impact on interim results, with pretax profits, due out in November, expected to be down 11 per cent at £265m.
General Merchandise figures are expected to be affected by warmer weather in September, with like-for-like sales down 1.5 per cent.
Sizing issues and warm weather in the second half of September remain a concern for M&S when it comes to the launch of their new Autumn and Winter ranges, although colder weather reported for this weekend should bring in sales.
The company is also reducing its pretax profit forecast for 2015 from £750m to £740m.